Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
LOGIN
 

Capital Relief Trades

Capital relief trades are deals put together by banks to sell on to investors to reduce the bank's regulatory capital requirements. Such deals can take many forms, but SCI focuses on those where synthetic or securitisation structures are utilised. Those deals can be broken down into the following broad categories (deals can be combinations of these categories): CDS - credit default swaps: in the capital relief trade context, this denotes deals that utilise such instruments to transfer credit risk. CLN - credit-linked note: in the capital relief trade context, this denotes the deal is structured as a note with an embedded credit derivative. Fin gtee - Financial guarantee: a means of structuring a capital relief trade, whereby the investors benefit from a guarantee that all the issuer's obligations will be met. Funded: where a capital relief trade is understood to have been structured using a credit derivative (CDS, CLN, synthetic CDO etc) with the protection seller making an initial payment. Unfunded: where a capital relief trade is understood to have been structured without an initial payment being made under the credit derivative (CDS, CLN, synthetic CDO etc). True sale: a capital relief trade based on a cash securitisation structure rather than a synthetic securitisation structure.


  • Innovative financial guarantee printed

    Raiffeisen's €1.2bn ROOF Slovakia 2017, which is believed to be the first synthetic securi...

    News    5 December 2017
  • Risk transfer round-up - 1 December

    Raiffeisen has completed ROOF Slovakia 2017, a €1.2bn financial guarantee from its Slovak...

    News    1 December 2017
  • Risk transfer come-back

    Bank of Ireland has returned to the risk transfer market with Mespil Securities 2017-1. The lender's...

    News    29 November 2017
  • SRT concerns acknowledged

    Attendees of a public hearing on the EBA's SRT discussion paper have raised concerns in relation to...

    News Analysis    24 November 2017
  • Mixed portfolio SRT printed

    NatWest has originated a capital relief trade dubbed Nightingale Securities 2017-1. Unusually, the &...

    News Analysis    21 November 2017
  • Risk transfer round-up - 17 November

    RBS hit the market this week with its first DBRS-rated risk transfer transaction, dubbed Nightingale...

    News    17 November 2017
  • Call for increased standardisation

    Ahead of the EBA's public hearing tomorrow on its significant risk transfer (SRT) discussion paper (...

    Talking Point    16 November 2017
  • AXA boosts risk transfer foothold

    AXA IM's structured finance unit raised over €1bn in total commitments for the AXA IM Part...

    News Analysis    10 November 2017
  • Risk transfer round-up - 3 November

    Two US public pension funds in Arizona and Pennsylvania are rumoured to have completed a capital rel...

    News    3 November 2017
  • Balance sheet optimisation continues

    Rabobank has transferred part of the risk on a €3bn commercial credit portfolio to pension...

    News Analysis    3 November 2017
  • Using insurance to lay off risk

    Alan Ball and Fiona Walden, senior underwriters leading the structured risk solutions team at Libert...

    The Structured Credit Interview    2 November 2017
  • Risk transfer round-up - 27 October

    Rabobank has sold a €600m portfolio of 3,600 loans that it originated. The loans all have...

    News    27 October 2017
  • Proportionality for capital floors?

    The general secretary of the Basel Committee has confirmed that the "finish line is in sight" for th...

    News Analysis    23 October 2017
  • Risk transfer round-up - 20 October

    Rumours abound of new capital relief trades being prepped. One source suggests that ING is readying...

    News    20 October 2017
  • CRT outlook bullish

    Optimism prevailed at SCI's recent Capital Relief Trades Seminar, where panellists were bullish on t...

    Talking Point    16 October 2017
  • Risk transfer round-up - 13 October

    Risk transfer activity continues, with Lloyds reportedly readying a transaction for Q4. Sources also...

    News    13 October 2017
  • Specialised financing vehicles introduced

    The latest reform of the French finance sector introduces a new category of financing vehicle that i...

    News    11 October 2017
  • Risk transfer round-up - 6 October

    Barclays has completed another DBRS-rated capital relief trade, dubbed Colonnade Global 2017-1 Finan...

    News    6 October 2017
  • Risk transfer round up - 29 September

    The focus of this past week has been the EBA's SRT discussion paper. Regulators and market participa...

    News    29 September 2017
  • Standardisation to bridge synthetic STS gap?

    The EBA's recent discussion paper on significant risk transfer (SRT) outlines the common structural...

    News Analysis    28 September 2017
  • SCI Start the Week - 25 September

    A look at the major activity in structured finance over the past seven days.

    Pipeline Additions to the pipeline last week were fairly broadly split. There were five ABS added,...

    News    25 September 2017