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18 March 2026

BIS's Prashant Babu, Michael Chui and Costas Stephanou: The rise and risks of synthetic risk transfers

Synthetic risk transfers (SRTs) are used by banks for capital and credit risk management. They have grown significantly in recent years but remain small relative to bank balance sheets. European banks have traditionally dominated SRT issuance, but their North American peers have seen an increase in ...

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