STS and new issuers to light up risk transfer market in 2021

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By Tom Brown
03 Mar 2021

The amount of significant risk transfer (SRT) transactions executed by US institutions tripled over the past year, a trend expected to continue in 2021 as the synthetics space makes up for lost time after the pandemic. The extension of simple, transparent and standardised (STS) rules into the sector will also help bring first-time issuers into the market, said panellists speaking at IMN’s Virtual Investors’ Conference on Significant Risk Transfer on Wednesday.

In 2020, about 18% of all significant risk transfer transactions in Europe were carried out by US institutions, the highest level on record according to Clifford Chance partner Jessica Littlewood. This is up from the average of around 6%.

“Every year I stand up and say this is ...

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