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.

• Tweaking tradition

  Dutch securitisation evolving across established sectors

  The Dutch securitisation market is seeing innovation and growth away from its traditional strong foc...

  News Analysis    13 August 2019

• SCI Start the Week - 12 August

  A review of securitisation activity over the past seven days

  SCI CRT awards Don't miss out on your chance to win: the submissions deadline for the inaugural SCI...

  News    12 August 2019

• Senior mezz eyed

  CRT issuers target asset managers

  Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief...

  News Analysis    9 August 2019

• Risk transfer round-up - 9 August

  CRT sector developments and deal news

  BNP Paribas is rumoured to be prepping a corporate capital relief trade for 3Q19. The lender&rsq...

  News    9 August 2019

• SCI Start the Week - 5 August

  A review of securitisation activity over the past seven days

  Market commentary Portuguese RMBS outperformed other securitisation asset classes last week, booste...

  News    5 August 2019

• Dual-tranche deal finalised

  Standard Chartered targets wide distribution

  Standard Chartered has completed a dual-tranche capital relief trade that references an undisclosed...

  News    2 August 2019

• Landmark SRTs inked

  BP Bari completes capital relief trades

  Banca Popolare di Bari has completed two capital relief trades that reference respectively a &eu...

  News    2 August 2019

• COSME tapped

  SME risk-sharing agreement signed

  Italian national promotional bank Cassa Depositi e Prestiti (CDP) has tapped the EU's COSME...

  News    1 August 2019

• New podcast now live

  The operational steps to setting up a CRT and more...

  In this week's podcast, the team discuss the operational steps taken when putting t...

  News    31 July 2019

• SCI Start the Week - 29 July

  A review of securitisation activity over the past seven days

  Transaction of the week Unusual securitisation backed by music rights collateral (SCI 23 July) SE...

  News    29 July 2019

• BMO SRT launched

  BMO expands mid-market exposure

  Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian...

  News    26 July 2019

• Benchmark SRT inked

  Bank of Scotland completes unusual synthetic UK RMBS

  Bank of Scotland has launched its first post-crisis synthetic UK RMBS. Dubbed Syon Securities 2019,...

  News Analysis    25 July 2019

• Risk transfer round-up - 24 July

  CRT sector developments and deal news

  Banca Popolare dell ‘Alto Adige is believed to be readying a capital relief trade that is...

  News    24 July 2019

• Revving up

  Italian auto SRT completed

  BNP Paribas has completed a €950m significant risk transfer transaction of Italian auto loa...

  News    22 July 2019

• Squaring the circle

  CRT issuers struggling with borrower anonymity

  Capital relief trade issuers are attempting to anonymise loan-by-loan data in transactions, while si...

  News Analysis    19 July 2019

• Risk transfer round-up - 19 July

  CRT sector developments and deal news

  Monte dei Paschi di Siena is rumoured to be prepping an Italian SME significant risk transfer transa...

  News    19 July 2019

• Operational issues

  CRT key steps outlined

  The operational issues involved in prepping a risk transfer transaction are often overlooked. Indeed...

  News Analysis    19 July 2019

• Czech mate

  SME CRT inked

  The EIB, the EIF and Česká spořitelna (ČS) have inked a capita...

  News    18 July 2019

• Risk transfer round-up - 11 July

  CRT sector developments and deal news

  Standard Chartered is believed to be readying a corporate capital relief trade that is expected to c...

  News    11 July 2019

• New deals surge

  Quarterly SCI data update

  2Q19 saw a surge in new issuance volume across securitisation markets either side of the Atlantic. T...

  News Analysis    10 July 2019

• SRT trio

  Santander expands SME foothold

  Santander has completed three SME significant risk transfer transactions that total €940.6m...

  News    9 July 2019