BankNotes: Significant Risk Transfers

BankNotes - Episode 4

Listen to the latest BankNotes podcast hosted by Osman Sattar with S&P Global Ratings’ analysts Richard Barnes and Brendan Browne, as they dive into the world of Significant Risk Transfers (SRTs).

Key takeaways:

• SRTs allow banks to offload credit risk to third-party investors, driven by regulatory capital relief & risk management.
• Usage is increasing in both Europe & the US, with Europe leading the way.
• Regulators are paying attention – the Fed clarified rules in 2023, and European regulators are generally constructive.
• We assess banks’ use of SRTs within a bank’s overall risk and capital management framework.

Article links:

Proposed EU Securitization Rules Are More Evolution Than Revolution

European Banks Continue To Embrace Significant Risk Transfers

Credit FAQ: How Are North American Banks Using Significant Risk Transfers?

Barclays And Santander Lead European Banks’ Significant Risk Transfer Activity

ABS Frontiers: The Credit DNA Of Synthetic Risk Transfer Securitizations

Banks Ramp Up Credit Risk Transfers To Optimize Regulatory Capital