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.


  • Second wave

    Synthetic CRE transactions launched

    Santander and NatWest have completed two commercial real estate risk transfer transactions and the m...

    News Analysis    15 October 2018
  • Risk transfer round-up - 12 October

    CRT sector developments and deal news

    Deutsche Bank is believed to be prepping a trade finance transaction from its TRAFIN risk transfer p...

    News    12 October 2018
  • SCI Start the Week - 8 October

    A review of securitisation activity over the past seven days

    Market commentary The European ABS primary market saw a lull in activity last week, which left some...

    News    8 October 2018
  • Compliance costs

    Private securitisations caught by disclosure requirements

    ESMA’s regulatory technical standards (RTS) regarding securitisation disclosures (SCI 6 Se...

    News Analysis    5 October 2018
  • Risk transfer round-up - 5 October

    CRT sector developments and deal news

    BNP Paribas is rumoured to be readying a replacement trade for a risk transfer transaction that it c...

    News    5 October 2018
  • Regulatory boost

    Positive prospects for project finance CRTs

    Santander has completed Fitzroy 2018-1 CLO, a financial guarantee and significant risk transfer tran...

    News Analysis    3 October 2018
  • SCI Start the Week - 1 October

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

    Conference SCI’s 4th Annual Capital Relief Trades Seminar is taking place on 16 October...

    News    1 October 2018
  • Risk transfer round-up - 28 September

    CRT sector developments and deal news

    Santander is believed to be the third capital relief trade issuer readying a commercial real estate...

    News    28 September 2018
  • Risk transfer return

    Standard Chartered completes trade finance CRT

    Standard Chartered has printed its first capital relief trade in three years, dubbed Trade Finance T...

    News    27 September 2018
  • CRT line-up finalised

    SCI seminar to assess regulatory threats and opportunities

    The line-up for SCI’s 4th Annual Capital Relief Trades Seminar – taking place on...

    News    25 September 2018
  • SCI Start the Week - 24 September

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

    Pipeline RMBS dominated the newly-announced deals remaining in the pipeline by the end of last week...

    News    24 September 2018
  • Inaugural infrastructure CRT launched

    Synthetic securitisation marks global first

    The African Development Bank (AfDB), alongside Mariner Investment Group, the European Commission, Mi...

    News Analysis    20 September 2018
  • Risk transfer round-up - 14 September

    CRT sector developments and deals news

    Santander is rumoured to be readying a corporate CRT for 4Q18. The Spanish bank’s last cor...

    News    14 September 2018
  • Brexit uncertainty highlighted

    CRTs unaffected although contract continuity concerns underscored

    Brexit has so far had a neutral impact on capital relief trades (CRTs) in terms of structuring and i...

    News Analysis    12 September 2018
  • Risk transfer round-up - 7 September

    CRT sector developments and deal news

    Caixabank is rumoured to be prepping an SME significant risk transfer transaction for 4Q18. This wou...

    News    7 September 2018
  • SME SRT completed

    Intesa taps Italian government guarantee fund

    Intesa Sanpaolo has completed a guarantee agreement with Fondo Centrale di Garanzia, the Italian gov...

    News    3 September 2018
  • Risk transfer round-up - 31 August

    CRT sector developments and deal news

    Lloyds is rumoured to be readying another commercial real estate risk transfer trade from its Wether...

    News    31 August 2018
  • SCI Start the Week - 20 August

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

    Pipeline The pipeline was quite sparse by the end of last week. A handful of ABS were still marketi...

    News    20 August 2018
  • Moral hazard addressed

    EIF completes SRT with BP Bari

    The EIF has completed a guarantee agreement with Banca Popolare di Bari under the SME Initiative for...

    News    17 August 2018
  • Risk transfer round-up - 17 August

    CRT sector developments and deal news

    UBI Banca is believed to be marketing its second-ever capital relief trade. The Italian bank&rsq...

    News    17 August 2018
  • SMEs supported

    Supranationals driving new credit ecosystem

    A new ecosystem is gaining traction in the securitisation market, with supranational institutions st...

    News Analysis    16 August 2018