synthetic risk transfer

Blind wagers on a bank risk transfer trade have never been so popular

Lenders eager for capital relief are turning to SRTs to insure more and more of their loans

The transactions – at least one of which will be tied to a portfolio of corporate debt – are expected to hit the market during the fourth quarter of this year.

JPMorgan talking with investors about two synthetic risk transfers

The bank is in early discussions with investors for two SRTs that could total about US$2 billion in bonds combined