Risk Offloading SRTs

Capital‑market activity is evident through risk‑transfer (SRT) negotiations. BBVA is pursuing an SRT linked to €5 billion ($5.8 billion) of corporate loans and a separate deal for smaller‑firm loans. This follows broader European banking trends, with Santander targeting five SRTs for commercial real‑estate and Brazilian small‑mid‑size company financing, and Deutsche Bank moving to hedge $4 billion of large corporate loans. These deals represent a strategy to offload default risk on at least $17.5 billion of loans across sectors.