May 31 2024 18 mins 2
As the regulatory environment continues to evolve, US and European banks have sought regulatory capital relief by offloading the credit risk of loans they make via special types of transactions.
Guests: Warren Kornfeld, Senior Vice President at Moody's Ratings; Nick Monzillo, VP-Senior Analyst at Moody's Ratings; Frank Cerveny, VP-Senior Research Analyst at Moody's Ratings
Host: Aaron Johnson, VP-Senior Research Writer at Moody's Ratings
Related reports:
- Auto ABS - US: Credit-linked notes include risks not seen in typical auto ABS; issuance is rising
- Banks and Structured Finance – US: Risk transfer gives banks protection, but more capital is better; ABS implications vary
- Banks and Structured Finance – Europe: Output floor proposal could erode benefits of SRT for regulatory capital and risk management purposes
