Synthetic Risk Transfer structures can become a regular part of the securities finance playbook

Our recent report on Synthetic Risk Transfer (SRT) trades taught us about regulation, trade structures, operations, investor types and other options for credit risk management. A few weeks after publication, we’re also seeing that the distance between SRT, securities lending and repo is narrower than we thought. The structures of SRT appear well suited to meet some of the challenges that securities finance faces today. This has implications for existing and new market participants.
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