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SRT & the Covid-19 fall-out
A Research Report for SCI's Market Intelligence Subscribers

The Covid-19 sell-off represents the first real test for significant risk transfer structures. SCI’s latest CRT Research Report shows that not only do capital relief trades appear to have weathered the storm, but they have also proven to be more relevant than ever before.

Amid pandemic-related economic stress, banks are expected to suffer downward migration of borrowers and therefore have to allocate more capital against those positions. The importance of SRT will increase in such an environment, given that it facilitates capital efficiency. However, the technology is also gaining broader recognition for its potential to boost the economic recovery post-coronavirus.

This report explores how the CRT market was impacted in the immediate aftermath of the Covid-19 shock, how transaction origination and execution is likely to evolve going forward, documentation issues created by payment moratoria and the role that SRT can play in the post-coronavirus economic recovery.