Evolution of the SRT market – From regulatory tool to core capital strategy

What First-Time SRT Investors Need to Know

The panel outlines the key considerations for investors new to SRTs, including the two main analytical approaches — statistical and loan-by-loan underwriting — the importance of understanding bank motivations, the risks of adverse selection, and the challenges posed by undisclosed pools and replenishment mechanics. The contrast between transparent US IG transactions and more complex European bespoke deals is highlighted.

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