Banco Santander (SAN) is pitching investors on a significant risk transfer (SRT) deal tied to roughly 3.3 billion euros ($3.8 billion) of global corporate loans, Bloomberg reported, citing people familiar with the matter.
According to the report, around 40% of the underlying loan portfolio is linked to financing for US companies.
SRT transactions allow banks to transfer part of the default risk on loan portfolios to investors such as hedge funds, helping lenders free up regulatory capital while offering investors double-digit returns in some cases, it said.
Banco Santander did not immediately respond to MT Newswires' request for comment.
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