The International Monetary Fund (IMF) published its Global Financing Stability Report, which includes an overview of the Significant Risk Transfer (SRT) market.
According to the report, over $1.1 trillion in bank assets have been synthetically securitized since 2016, helping to reduce systemic risk and increase the financial system’s resilience.
The Alternative Credit Council (ACC), a private credit affiliate of the Alternative Investment Management Association (AIMA), published a detailed public comment letter addressing the key concerns raised in response to the report.
In the letter, ACC argues how SRTs:
- Act as a true credit hedge, reducing banks’ credit exposure
- Increase banks’ loss absorption capacity
- Are already disclosed to banking supervisors