From niche to building block
SRTs deserve a permanent place in alternative credit portfolios
Significant Risk Transfers have long been a tool for banks to free up regulatory capital. But for institutional investors, their relevance is growing fast.
Why now?
- Basel III/IV is driving SRT issuance upward: volume has quadrupled since 2016, with over 100 banks now active
- Access to banks' core portfolios: diversified, proven loan books at attractive spreads
- Stable cash flows, structured risk allocation, and the ability to apply ESG selection criteria
In Financial Investigator, Serdar explains how SRTs are evolving from a niche securitisation tool into a structural building block within alternative credit. And what that means for investors seeking private market alternatives with a strong risk-return profile.