• Credit-risk transfer transactions’ prominence grows as regulations evolve

  • May 31 2024
  • Length: 18 mins
  • Podcast

Credit-risk transfer transactions’ prominence grows as regulations evolve

  • Summary

  • As the regulatory environment continues to evolve, US and European banks have sought regulatory capital relief by offloading the credit risk of loans they make via special types of transactions.

    Guests: Warren Kornfeld, Senior Vice President at Moody's Ratings; Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Frank Cerveny, VP-Senior Research Analyst at Moody's Ratings

    Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings

    Related reports:

    • Auto ABS - US: Credit-linked notes include risks not seen in typical auto ABS; issuance is rising
    • Banks and Structured Finance – US: Risk transfer gives banks protection, but more capital is better; ABS implications vary
    • Banks and Structured Finance – Europe: Output floor proposal could erode benefits of SRT for regulatory capital and risk management purposes
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