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.


  • Risk transfer round-up - 23 March

    Credit Suisse is believed to have priced a capital relief trade referencing a loan book originated i...

    News    23 March 2018
  • Grappling with uncertainty

    Capital relief trade issuers are incorporating structural features highlighted in the EBA&a...

    News Analysis    23 March 2018
  • Stress scenarios disclosed

    The Bank of England has announced that the 2018 stress test scenario for the major UK banks will be...

    News    19 March 2018
  • Market moves - 16 March

    EMEA Citigroup has appointed Laura Coady to the newly created position of head of EMEA, structured...

    Market moves    16 March 2018
  • CRE CRTs pick up

    Synthetic securitisations referencing commercial real estate are attracting more investor interest,...

    News Analysis    9 March 2018
  • Efficiency drive

    Credit Suisse is pioneering the re-tranching of capital relief trades, following the implementation...

    News Analysis    9 March 2018
  • Basel 4 impact 'manageable'

    The new Basel 4 capital framework (SCI 14 December 2017) is expected to increase Dutch bank RWAs by...

    News    7 March 2018
  • Risk-sharing on the agenda

    Panellists participating in SCI’s Risk Transfer & Synthetics Seminar are primed to...

    News    7 March 2018
  • SCI Start the Week - 5 March

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

    Upcoming event SCI Risk Transfer & Synthetics Seminar - 13 March, New York SCI...

    News    5 March 2018
  • Synthetic exposure expanded

    Bank of Ireland has released its Pillar Three report, which indicates an expansion of its synthetic...

    News    2 March 2018
  • Risk transfer round-up - 23 February

    Deutsche Bank is said to be marketing another capital relief trade, dubbed CRAFT 2018-1. This follow...

    News    22 February 2018
  • IFRS 9 credit event pay-out challenged

    Synthetic securitisations are unlikely to trigger CDS credit events following an increase in IFRS 9...

    News Analysis    16 February 2018
  • SCI Start the Week - 12 February

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

    Pipeline It was yet another busy week of pipeline additions. There were nine ABS, 11 CLOs, three CM...

    News    12 February 2018
  • Risk transfer round-up - 9 February

    Credit Suisse is rumoured to be re-tranching its existing risk transfer transactions, echoing recent...

    News    9 February 2018
  • Carillion impact gauged

    Capital relief trade issuers and investors have been assessing the effect of Carillion's def...

    News Analysis    5 February 2018
  • APRA signals change in tone

    The Australian Prudential Regulatory Authority has set out its priorities for 2018, most notably wit...

    News    1 February 2018
  • Innovative portfolio guarantee inked

    The EIF has completed five synthetic securitisations with five Italian banks, in the context of the...

    News Analysis    30 January 2018
  • SCI Start the Week - 29 January

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

    Pipeline The balance of additions to the pipeline last week closely followed that of the week befor...

    News    29 January 2018
  • Slicing the risk

    Capital relief trade issuers and investors are weighing in on the virtues of a structuring technique...

    News Analysis    26 January 2018
  • Landmark financial guarantee completed

    The EIB and Credit Agricole completed an innovative synthetic securitisation in late December. Dubbe...

    News Analysis    23 January 2018
  • Programmatic issuance continues

    Intesa Sanpaolo last month returned to the risk transfer market with another GARC transaction. Dubbe...

    News Analysis    22 January 2018