SRT market to shake off ECB capital relief hit

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By Tom Brown
23 Apr 2020

Significant risk transfer (SRT) deals have temporarily dried up following the European Central Bank’s decision to lower risk requirements for banks, but market observers say deals will still go ahead in 2020.

The ECB provided unprecedented capital relief for European banks on April 16, allowing lower capital requirements for banks calculating how much money to set aside for market risk.

The move has had the knock-on effect of paralysing the execution of private SRT deals, many of which are used ...

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