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.


  • SCI Start the Week - 23 April

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

    Pipeline Auto ABS dominated the pipeline once again last week. A handful of other ABS, as well as C...

    News    23 April 2018
  • Proportional protection reviewed

    EU policymakers are currently negotiating an amendment to Article 234 of the CRR that would allow ba...

    News Analysis    20 April 2018
  • Risk transfer round-up - 20 April

    The capital relief trades market is undergoing a quiet period, following some unusual activity for Q...

    News    20 April 2018
  • Synthetic NPLs gain traction

    The ECB’s latest non-performing loan provisioning guidelines are expected to trigger incre...

    News Analysis    29 March 2018
  • Innovative Dutch SRT completed

    Rabobank has completed an innovative Dutch significant risk transfer (SRT) deal with the EIF. The &a...

    News    28 March 2018
  • Seeking to scale

    The capital relief trades (CRT) market suffers from a material gap between banks’ needs an...

    News Analysis    26 March 2018
  • Market moves - 23 March

    CDS clearing developments Intercontinental Exchange has transitioned index CDS open interest from...

    News    23 March 2018
  • 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