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.
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EJF stakes a claim
Unusual Third Coast trade EJF's latest foray into US regional CRT
News 23 April 2025
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Job swaps weekly: 400CM promotes five as investment strategy heads
Securitisation people moves and key promotions
This week’s round-up of job swaps sees 400 Capital Management (400CM) beef up its securitisation strategy team with a handful of promotions. Elsewhere, Ares Management Corporation has named a co-head of Europe for alternative credit, while Taylor Wessing has strengthened its banking and finance team.
400 Capital Management has announced five new heads of investment strategy. Portfolio manager Quinn .......
Market Moves 17 April 2025
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Third Coast and EJF show the way
Novel CRT true sale offers template for slimming CRE exposure
SRT Market Update 14 April 2025
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New player
EIB Group and ABN AMRO sign synthetic securitisation
The transaction is the first synthetic securitisation entered into between Dutch lender ABN AMRO (ABN) and the EIB Group. It references a portfolio of over €1bn in existing Dutch SME and corporate exposures and enables ABN to free up capital (€1.2bn) for new lending to Dutch SMEs and Mid-Caps, of which at least 30% will be allocated to projects .......
SRT Market Update 10 April 2025
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Latest SRTx fixings released
Faring worse
This month, policy uncertainty and its associated market volatility have taken a clear position of prominence within the global financial markets.
The current scenario of across-the-board tariffs accompanied by retaliatory tariffs, has the potential to weigh on corporates’ input costs and profit margins, beyond a ‘one time’ upward price level shock. Against this evolving and intense backdrop, leading .......
News 9 April 2025
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ABF key pillar in AXA IM Alts' new evergreen private credit strategy
Christophe Fritsch, global head of alternative credit at AXA IM Alts, answers SCI's questions
Global alternative investment firm AXA IM Alts has made ABF a cornerstone of its newly launched diversified evergreen private credit strategy. Designed for the private wealth segment, the strategy will invest across the credit spectrum, from ABF to direct lending, aiming to generate long-term recurring income.
Christophe Fritsch, global head of alternative credit at AXA IM .......
The Structured Credit Interview 9 April 2025
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Romanian SRT
SRT market update
The European Bank for Reconstruction and Development (EBRD) and UniCredit have closed a synthetic securitisation.
Structurally, the EBRD is providing credit protection of up to €77.5m on the mezzanine tranche of a synthetic securitisation in the form of an unfunded guarantee. The underlying portfolio is a granular portfolio of both SME and corporate loans originated by UniCredit. The transaction .......
SRT Market Update 8 April 2025
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US CRT: Shoring up regionals – video
Heliostat Capital founder and president Charles Callahan speaks to SCI
....... News Analysis 7 April 2025
Job swaps weekly: KBRA head of CMBS surveillance and research retires
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees KBRA naming a successor to outgoing head of CMBS surveillance and research Roy Chun, who is to retire. Elsewhere, Jefferies has named a new fixed income chief risk officer, while and MDPG Advisory director and an S&C Capital founder have formed a new London-based litigation finance and advisory .......
Market Moves 4 April 2025
Green SRTs
EIB Group and BBVA sign new SRT
The EIB Group has completed a new synthetic securitisation transaction with BBVA, allowing for 100% green projects.
The securitisation is on a portfolio of over €1.4bn in loans to SMEs. BBVA will retain the senior and junior tranches, while the EIB Group will guarantee the mezzanine tranche of €93m. This investment will allow BBVA to mobilise around €185m to finance the construction .......
SRT Market Update 3 April 2025
PAG concludes fundraising
Asia-focused investment firm plans further expansion in Japan, signalling growing deal pipeline
PAG has concluded fundraising for its third SRT vehicle - PAG BRS Fund III, securing US$1.25bn in total commitments, including co-investments.
The fund received strong support from institutional allocators, with commitments from sovereign wealth, pension funds and endowments across North America, Europe, Middle East, and the Asia Pacific.
The firm, which manages over US$4bn of SRT investments, remains .......
News 3 April 2025
SRT disclosures reviewed (UPDATED)
Pillar 3 survey underlines Santander's dominance
News 28 March 2025
Insurer appetite for SRTs on the rise
IACPM survey shows substantial growth of unfunded protection
Insurer provision of unfunded protection on tranches of SRT transactions has increased significantly year-on-year. The number of protections sold rose to 82 new subscriptions in 2024, versus 45 the previous year, according to the IACPM’s latest Global SRT Insurance Survey.
Respondents insured €2.8bn of European SRT transactions last year, compared to €1.2bn in 2023. The average insured amount .......
News 27 March 2025
SCI In Conversation Podcast: Jason Smilovitz and Midroog's Moty Citrin (part 2)
We discuss the hottest topics in securitisation today...
In the second part of this episode of the SCI In Conversation podcast, SCI’s Selvaggia Cataldi continues her discussion about Israel’s securitisation market with Moty Citrin, head of financial institutions and structured finance at Moody’s subsidiary Midroog, and independent senior securitisation consultant Jason Smilovitz.
Citrin and Smilovitz discuss the impact of the country's recent legislative changes, investor sentiment, market liquidity, .......
News Analysis 27 March 2025