Insurers pile into deals allowing banks to offload default risk
Market for synthetic risk transfers has boomed in recent years, with insurers now offering banks unfunded structures
Market for synthetic risk transfers has boomed in recent years, with insurers now offering banks unfunded structures
BELLINGS Intelligence Score: 38
Why it matters
The growth of synthetic risk transfer deals where insurers take on banks' default risk represents notable market activity with potential implications for credit risk distribution and bank capital management, but it remains a specialized market development without immediate systemic impact.
Sources
Financial Times
Insurers pile into deals allowing banks to offload default risk
Market for synthetic risk transfers has boomed in recent years, with insurers now offering banks unfunded structures