The Risk In Credit Risk Transfers

In the latest episode of "Credit Matters," Shankar Ramakrishnan (Head of U.S. Credit & Market Engagement, IGM) and Bruce Clark (Head of Rates Market Coverage, IGM) speak with Matthew Bisanz (Financial Regulatory Partner, Mayer Brown) about credit risk transfers - also known as CRT/CRS in the U.S. and SRT in Europe - and how banks sell first-loss credit exposure via structured notes without selling the underlying loans to obtain regulatory capital relief.Matthew explains why the regional banking crisis was more about liquidity preparedness and discount window frictions than capital shortfalls, and expects greater regulatory focus on liquidity and discount window operations.The discussion covers uninsured depositor discipline, the Fed’s role as a backstop for the real economy, CRT pricing and maturities, key U.S. regulatory clarifications enabling debt-note structures, limits on insurance-company participation, market size and transparency concerns, and why specialization is key for legal careers as AI advances.Get in touch: For more information about how IGM's solutions can support your business, visit our website or contact us: https://informaconnect.com/igm/Follow us: Keep up to date with all the latest from IGM by following us on LinkedIn: https://www.linkedin.com/company/informa-global-markets