Esteban Duarte

While the majority of SRTs are used to offload credit risk on corporate lending, strong demand for the instruments is allowing banks to offer other forms of collateral. Subscription lines are typically short-term loans, helping private equity or credit firms to bridge the gap between making investments or paying expenses and calling on limited partners for cash.

Highly complex credit structures targeting specialist investors are now an official goal of the global development finance sector.

Credit Agricole SA is considering offloading credit risk linked to lending to European car dealerships grappling with cost pressures and the transition to electric vehicles.

Dutch pensions manager PGGM has agreed to take on part of the risk on a portfolio of ING Groep NV loans backing the energy transition.

UniCredit SpA is working on a potential deal to hedge €1 billion ($1.1 billion) in German home loans as it prepares to expand its footprint in Europe’s biggest economy.

Insurers' unfunded significant risk transfers should meet a set of extra solvency criteria to ensure stability if policymakers back the most lenient bank-capital treatment.

The European Union is considering strengthening the rules around a riskier form of insurance provided to the banking sector, as part of an upcoming package to broadly ease access to securitized finance.

Intesa Sanpaolo SpA is working on significant risk transfers to hedge more than €5 billion ($6 billion) in assets, signaling continued demand for the higher-risk instruments despite concerns in markets about debt and geopolitical tensions.

The framework, still needs to be finalized and formally endorsed, would reduce banks' capital requirements for low-risk deals and reduce administrative burden for market participants.

Bank of Nova Scotia is working on a significant risk transfer tied to around $2 billion of loans, joining a growing list of lenders looking to take advantage of strong demand to wrap up deals before year-end.