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


  • 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
  • Risk transfer round-up - 22 September

    A Barclays significant risk transfer deal planned for mid-September has reportedly been delayed unti...

    News    22 September 2017
  • EBA releases SRT discussion paper

    The EBA has released its significant risk transfer (SRT) discussion paper, the main elements of whic...

    News    20 September 2017
  • Third Colonnade global completed

    Barclays has closed its third Colonnade global significant risk transfer trade (SRT), Colonnade Glob...

    News Analysis    8 September 2017
  • Risk transfer round-up - 1 September

    As expected, August was a quiet month for capital relief trade issuances. But market sources continu...

    News    1 September 2017
  • SCI Start the Week - 21 August

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

    Pipeline Only a handful of transactions remained in the pipeline at the end of last week. The major...

    News    21 August 2017
  • Risk transfer framework outlined

    Outlines of the main elements of the EBA's risk transfer discussion paper - due to be rele...

    News    18 August 2017
  • Risk transfer round-up - 4 August

    Capital relief trade players are expecting a quiet August, before the flurry of activity that will d...

    News    4 August 2017
  • Regulatory call exercised for Calico

    The Co-operative Bank last week announced a regulatory call of its Calico Finance Number One capital...

    News Analysis    1 August 2017
  • Risk transfer round-up - 28 July

    Delay has been the theme in the capital relief trades market this week. Nordea has begun marketing...

    News    28 July 2017
  • Synthetic mortgage 'game changer' awaited

    The inclusion of mortgages in leverage ratio calculations and lower risk weights for the asset are a...

    News Analysis    28 July 2017
  • Pension fund increases risk transfer mandate

    The New Mexico Educational Retirement Board has been steadily increasing its foothold in the risk tr...

    News    21 July 2017
  • Swedish regulations to limit risk transfer

    Finansinspektionen, Sweden's financial supervisory authority, recently released new securitisation g...

    News Analysis    20 July 2017
  • Synthetic expected loss approach outlined

    Scope has published research that offers a technical illustration of how the expected loss framework...

    News    18 July 2017
  • Final STS document welcomed

    The European Parliament's economic and monetary affairs committee yesterday approved, as expected, t...

    News Analysis    12 July 2017
  • Risk transfer round-up - 7 July

    The second quarter appears to have been a quiet period in the risk transfer market, with only two ca...

    News    7 July 2017
  • Risk transfer round-up - 30 June

    The EIF has recently signed guarantees with five banks in Romania under its SME initiative (SCI 12 M...

    News    30 June 2017
  • SCI Start the Week - 26 June

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

    PipelineA mix of new deals - both in terms of collateral type and jurisdiction -...

    News    26 June 2017
  • IFRS 9 to spur risk transfer trades

    Higher expected provisioning under IFRS 9 is expected to spur a slew of risk transfer issuance befor...

    News Analysis    23 June 2017
  • Risk transfer round-up - 23 June

    Sources refer to heightened activity in the capital relief trades market, with many deals awaiting f...

    News    23 June 2017
  • Regulatory boost for risk transfer trades

    Balance sheet synthetic securitisation volume is predicted to rise in the coming years, with greater...

    News Analysis    20 June 2017