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.


  • Confidentiality issues persist

    Disclosure questions unresolved for CRT market

    ESMA’s updated questions and answers on the Securitisation Regulation, clarifies different...

    News    2 December 2019
  • SCI Start the Week - 2 December

    A review of securitisation activity over the past seven days

    Transaction of the week Credit Agricole is marketing a securitisation of Dutch consumer loans origi...

    News    2 December 2019
  • Full-stack debut

    BDK completes first auto SRT

    Bank Deutsches Kraftfahrzeuggewerbe (BDK) has debuted its first full-stack capital relief trade. Dub...

    News    2 December 2019
  • Spanish SRT inked

    Banco Cetelem completes full-stack auto ABS

    Banco Cetelem has completed the first full-stack Spanish auto significant risk transfer transaction...

    News    2 December 2019
  • Risk transfer round-up - 28 November

    Risk transfer round-up - 28 November

    HSBC is rumoured to be readying a UK and European corporate loan SRT. This is one of two rumoured co...

    News    2 December 2019
  • Italian SRT inked

    UBI Banca seals the triple

    UBI Banca has completed its third capital relief trade (CRT) following its inaugural transaction two...

    News    26 November 2019
  • SCI Start the week - 25 November

    A review of securitisation activity over the past seven days

    Transaction of the week Hercules tapped Alpha Bank is set to securitise a €12bn mixed p...

    News    25 November 2019
  • Template concerns

    Paper proposes mitigants for unintended consequences

    Major risk-sharing transaction investor PGGM has published a position paper on the ESMA securitisati...

    News Analysis    22 November 2019
  • Ramping up

    Standard Chartered boosts corporate issuance

    Standard Chartered has completed a US$135m CLN that references a US$1.5bn portfolio of US and Europe...

    News    21 November 2019
  • US CRT pick-up?

    Volumes to remain restricted to large banks

    The US capital relief trades market is witnessing a long-awaited uptick, with three deals reportedly...

    News Analysis    18 November 2019
  • SCI Start the Week - 18 November

    A review of securitisation activity over the past seven days

    Transaction of the week UniCredit has completed what is believed to be the largest European ABS tra...

    News    18 November 2019
  • Full-stack trend continues

    FCA completes Italian auto SRT

    Fiat Chrysler Automobiles (FCA) has completed a €912.6m true sale significant risk transfer...

    News    15 November 2019
  • Risk transfer round-up - 15 November

    CRT sector developments and deal news

    Santander is rumoured to be prepping a synthetic securitisation of German consumer loans. This is on...

    News    15 November 2019
  • Choose risk

    Richard Robb, ceo of Christofferson, Robb & Company (CRC), an investment manager in New York...

    Q: How is CRC involved in the capital relief trade or risk sharing market? A: We continue to invest...

    The Structured Credit Interview    13 November 2019
  • SCI Start the Week - 11 November

    A review of securitisation activity over the past seven days

    Stories of the week Pursuing illiquidity premia Corbin Capital answers SCI's questions Risk t...

    News    11 November 2019
  • Risk transfer return

    Bank of Ireland issues mezzanine tranche

    Bank of Ireland has issued an additional mezzanine tranche on top of the junior tranche of a 2017 ca...

    News    8 November 2019
  • Risk transfer round-up - 8 November

    CRT sector developments and deal news

    BMO will call a capital relief trade dubbed Muskoka Series 2017-1 in December. The senior secured an...

    News    8 November 2019
  • Rollover prepped

    NPL CRT to be refinanced

    Hoist Finance is readying a rated securitisation backed by Italian unsecured non-performing loans wi...

    News Analysis    7 November 2019
  • SCI Capital Relief Trades Awards 2019

    Personal Contribution to the Industry: Mascha Canio, Head of Credit & Insurance Linked Inves...

    Heading up a team responsible for one of the largest investment portfolios in the sector that has dr...

    News    6 November 2019
  • SCI Capital Relief Trades Awards 2019

    Advisor/Service Provider of the Year: Scope Ratings

    Scope Ratings has been selected as SCI’s Advisor/Service Provider of the Year, thanks to i...

    News    5 November 2019
  • SCI Capital Relief Trades Awards 2019

    Credit Insurer of the Year: Arch Capital Group

    Arch Capital Group Ltd (ACGL) is SCI’s Credit Insurer of the Year in recognition of its po...

    News    4 November 2019