BNP Sells SRTs Tied to €5 Billion of Loans Amid Volatility Spike
Banks use SRTs as a way to insure loans against default.
Photographer: Nathan Laine/BloombergBNP Paribas SA completed significant risk transfer deals tied to €5 billion ($5.8 billion) of loans, according to a person familiar with the matter, despite the recent spike in market volatility.
The Paris-based lender priced a SRT linked to a portfolio of €4 billion in large corporate loans, said the person, requesting anonymity to discuss a private matter. The lender also completed another SRT linked to a €1 billion pool of high-yield corporate loans, including leveraged buyout debt, the person said.