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.


  • Risk transfer round-up - 16 May

    CRT sector developments and deal news

    Caixabank has completed a synthetic securitisation of Spanish SMEs with the European Investment Fund...

    News    16 May 2019
  • Risk transfer round-up - 10 May

    CRT sector developments and deal news

    Credit Suisse’s Magnolia Finance V 2015-3 has been de-listed from the Cayman Islands stock...

    News    10 May 2019
  • Risk transfer opportunity?

    Failed merger talks raise CRT prospects

    Deutsche Bank’s capital relief trade (CRT) issuance could witness a boost following the fa...

    News Analysis    9 May 2019
  • Challenges persist

    Structuring issues put shipping SRTs on hold

    Capital relief trades referencing shipping loans have long been discussed and planned by a small num...

    News Analysis    3 May 2019
  • Risk transfer round-up - 3 May

    CRT sector developments and deal news

    Santander is rumoured to be readying an SME transaction from its Magdalena programme for 2Q19.The tr...

    News    3 May 2019
  • Risk transfer round-up - 26 April

    CRT sector developments and deal news

    The second quarter of this year is expected to be more active in terms of capital relief trade issua...

    News    26 April 2019
  • Rating agency names managing director

    Sector developments and company hires

    EMEA Scope has named Guillaume Jolivet as md. He joins the firm’s management board, along...

    Market moves    25 April 2019
  • CLO manager denied incentive fee

    Sector developments and company hires

    Incentive fee ruling The High Court in London has ruled that Barings (UK), as collateral manager, w...

    Market moves    18 April 2019
  • Risk transfer round-up - 18 April

    CRT sector developments and deal news

    Credit Suisse is believed to be readying a corporate capital relief trade from its Elvetia programme...

    News    18 April 2019
  • BWIC boom

    Quarterly SCI data update

    The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q1...

    News Analysis    11 April 2019
  • Risk transfer round-up - 3 April

    CRT sector developments and deal news

    Deutsche Bank has completed its first capital relief trade for the year. Dubbed CRAFT 2019-1, the US...

    News    3 April 2019
  • CRT credit event

    Company hires and sector developments

    CRT credit event HSBC’s Metrix series 2015-1 CLN has suffered another credit event. The...

    Market moves    27 March 2019
  • Goals aligned

    Insurers target dual-tranche CRTs

    Insurance firms are targeting mezzanine tranches in dual-tranche capital relief trades as banks warm...

    News Analysis    22 March 2019
  • Latest podcast now available

    CRT themes and a Dutch RMBS first discussed

    In this month's podcast, we explore some interesting themes within the CRT market: namely,&a...

    News    15 March 2019
  • Control rights

    Synthetic CRE investors gain comfort

    Investors in risk transfer transactions referencing commercial real estate loans have become more co...

    News Analysis    8 March 2019
  • Creative approach

    Definition of CRT criteria evolving

    As the drivers for banks to pursue risk transfer transactions have broadened over the last few years...

    News Analysis    7 March 2019
  • Deleveraging deal

    Bari SRT performance consistent with expectations

    Scope has determined that the performance of Banca Popolare di Bari’s last significant ris...

    News    6 March 2019
  • Line-up finalised

    CRT event to include two workshops

    The line-up for SCI’s 3rd Annual Risk Transfer & Synthetics Seminar on 12 March ha...

    News    5 March 2019
  • STS synthetics pending

    EBA to publish report by year-end

    The EBA is expected to publish a report on STS synthetic securitisations by year-end, which will the...

    News Analysis    1 March 2019
  • Downward drift

    Low default trend continues

    Global corporate defaults fell in 2018 in advanced markets and were stable in emerging markets. The...

    News    1 March 2019
  • New fund for CDS recruit

    Company hires and sector developments

    ABL acquisition Benefit Street Partners affiliate Business Development Corporation of America has a...

    Market moves    28 February 2019