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

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.

  • EIF in UK CRT first

    The EIF has signed a securitisation guarantee deal with RBS, providing capital relief on a £...

    News Round-up    22 December 2016
  • Proving compliance

    Demonstrating significant risk transfer discussed

    How to demonstrate significant risk transfer (SRT) was a hot topic at SCI's Capital Relief Trades Se...

    Talking Point    19 December 2016
  • Learning by doing

    Issuers weigh capital relief opportunities and challenges

    Capital relief trades, also called risk sharing trades, can provide issuing banks with several advan...

    News Analysis    16 December 2016
  • Second Salisbury prices wider

    Lloyds has closed a capital relief trade referencing a £2.1bn granular portfolio of UK SME...

    News    14 December 2016
  • EMEA SME ABS trends to continue

    EMEA SME ABS market activity and deal characteristics will be driven by a broad array of originators...

    News Round-up    30 November 2016
  • CRR boost?

    The European Commission's CRR 2 reforms, which it unveiled last week, include proposals that appear...

    News    29 November 2016
  • Innovative Griffon deal welcomed

    Griffon Funding - which Barclays closed in September - has been hailed as an inn...

    News    28 November 2016
  • CRT line-up finalised

    Panellists are being finalised for SCI's latest Capital Relief Trades Seminar, which is being held o...

    News Round-up    17 November 2016
  • Converging approach?

    Current status of capital relief trades discussed

    Representatives from Chorus Capital, Citi and Clifford Chance recently discussed the current status...

    Talking Point    2 November 2016
  • Implicit support guidelines published

    The EBA has published guidelines on implicit support for securitisation transactions that aim to cla...

    News Round-up    4 October 2016
  • CRT conference line-up confirmed

    Panellists have been confirmed for SCI's Capital Relief Trades Seminar, which is being held tomorrow...

    News Round-up    14 September 2016
  • Capital relief trades webinar due

    SCI is hosting a complimentary webinar on the current status of capital relief trades. The event is...

    News Round-up    6 September 2016
  • Nordea completes synthetic deal

    Nordea Bank has sold a synthetic securitisation referencing €8.4bn in SME and corporate lo...

    News    25 August 2016
  • Singular circumstances

    Regulatory changes fuelling rise of 'special situations'

    European banks are fundamentally changing the way they structure and sell securitisations. A rise in...

    News Analysis    25 August 2016
  • NPL renaissance

    €9bn Italian ABS provides fresh impetus

    Banca Monte dei Paschi di Siena (MPS) announced last week that it plans to offload its entire portfo...

    News Analysis    5 August 2016
  • False alarm?

    Basel CRT warning played down

    The Basel Committee caused somewhat of a stir earlier this month when it warned banks against increa...

    News Analysis    27 June 2016
  • Anchor investment proposed

    The IFC has disclosed that it is considering becoming an anchor investor in United Asia Loan Funding...

    News Round-up    23 June 2016
  • Capital-arbitrage warning issued

    The Basel Committee has warned banks against conducting capital relief trades. The regulator says su...

    News Round-up    3 June 2016
  • Spanish synthetics on the cards

    Moody's suggests that synthetic securitisations could become more popular for Spanish banks looking...

    News Round-up    6 May 2016
  • Hedging operation

    Debut oprisk ILS prepped

    Credit Suisse is prepping a unique Sfr700m ILS deal. Referred to as OperationalRe, it will utilise c...

    News Analysis    12 April 2016
  • Risky business?

    Risk-sharing deal opportunities grow

    Capital relief trade opportunities are increasing as more jurisdictions open up. However, with this...

    News Analysis    2 March 2016