Synthetic securitizations uptick could affect banks’ credit ratings
Counterparty risk, reliance on credit-linked notes are factors
An increase in synthetic securitizations could affect banks’ overall credit rating assessment as regulators weigh reliance on credit-linked notes for capital relief. Credit risk transfer, aka significant risk transfer (SRT), transactions have picked up steam in auto as banks plan for higher Federal Reserve capital requirements set to take effect early next year. Banks are […]
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