Deutsche Pfandbriefbank AG (pbb) has entered into a significant risk transfer $(SRT)$ transaction with Oaktree Capital Management, covering a $2 billion portfolio of performing US commercial real estate loans, primarily in the office sector. Under the agreement, Oaktree will provide protection against potential losses on a $320 million mezzanine tranche of the portfolio by subscribing to a credit-linked note issued by pbb. This synthetic, cash-collateralized structure allows pbb to economically hedge 16% of the risk associated with the reference portfolio while retaining senior exposure to the majority of its US assets. The transaction supports pbb's ongoing withdrawal from the US market and was advised by Alvarez & Marsal Financial Services, with Deutsche Bank AG as sole arranger and placement agent.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Deutsche Pfandbriefbank AG published the original content used to generate this news brief on December 22, 2025, and is solely responsible for the information contained therein.
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