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Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Thursday, November 13, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Early Bird Pricing!
MSRP
$347.00
$294.95
Save $52.05

Discount expires 10/13/25

This course is $0 with these passes:

CLE
ALL

This program will provide an overview of significant risk transfers (SRTs) and capital relief trades (CRTs) and their increasing prevalence in the U.S. The panel will explain how these transactions work, the legal and regulatory challenges, and the benefits they provide banks and investors, as well as provide guidance for negotiating and structuring these complex transactions.

Faculty

David Lucking
Partner
Parent: Linklaters LLP

Mr. Lucking advises global financial institutions and private credit funds on a wide range of derivatives products and asset classes (including credit, rates, FX, equity, longevity) in both funded and unfunded form. He has drafted a number of market standard document templates for the ISDA and other derivatives industry bodies, including the 2014 ISDA Credit Derivatives Definitions and documentation for confirming trades referencing the iTraxx and CDX indices. Mr. Lucking is a leader in the credit derivatives market. He is the U.S. adviser to the Credit Derivatives Determinations Committees which determine Credit Events and other matters for the global credit derivatives market. Mr. Lucking also regularly advises on various aspects of the transition of the over-the-counter derivatives market to regulated trading platforms and central clearing houses, as well the registration of swap dealers under the Dodd-Frank Act. 

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Description

SRTs encompass several types of transactions including synthetic risk transfers, credit risk transfers, and regulatory CRTs. While there are common characteristics with these types of transactions, each transaction has unique aspects. Taken together, SRTs are one of the fastest growing areas in financial markets and are utilized by banks to manage risk and increase credit availability while also allowing investors to diversify their portfolios.

SRT transactions allow a bank to transfer the credit risk of certain loans to investors such as private credit funds and other private investors while keeping the loans on their books. In addition to reducing the bank's risk of loss in the underlying portfolio, they also reduce the amount of regulatory capital that the bank needs to hold. 

SRT transactions can be applied to a variety of assets including fund finance products, corporate loans, commitments, receivables, derivatives, debt and equity securities, and mortgages. In the U.S., the most common structures for these transactions are indirect or credit-linked notes. 

Executing an SRT transaction requires navigating a number of legal and regulatory issues such as the Volcker Rule, the Dodd-Frank Wall Street Reform Act, insurance recharacterization risks, and Regulation Q's bank capital rules, among others, depending on the structure of the transaction. In September 2023, the Federal Reserve Board (FRB) released FAQs clarifying the rules around Regulation Q and the capital treatment of structured debt involving the sale of credit-linked notes. The FRB's guidance confirmed that when properly structured, these transactions are viewed as valid capital management tools. 

Listen as our authoritative panel examines the current trends and developments with SRTs and CRTs and their most common structures. The panel will also provide tips for avoiding and addressing potential pitfalls with these transactions.

Outline

I. Overview: defining SRTs and CRTs and the various types of transactions

II. Current market conditions and the rise of SRT and CRT transactions

III. Types of assets eligible for SRTs or CRTs

IV. Types of investors that are active in this market

V. Legal and regulatory issues and considerations

A. Volcker Rule

B. Dodd-Frank Wall Street Reform Act

C. Insurance recharacterization risk

D. Regulation Q and the FRB's September 2023 FAQ guidance

E. Basel III Endgame

VI. Benefits of SRTs and CRTs to banks and private investors

VII. Potential pitfalls relating to these transactions

VIII. Negotiating and structuring an SRT or CRT transaction

IX. Comparing SRT and CRT transactions in the U.S. vs. the EU and UK

X. Practitioner pointers

Benefits

The panel will review these and other key considerations:

  • What are the current trends and developments with SRT and CRT transactions, and why are these transactions on the rise in the U.S.?
  • What are the legal and regulatory issues and considerations relating to SRT and CRT transactions?
  • What are key factors when negotiating and structuring SRT and CRT transactions?
  • What types of assets are eligible for SRTs or CRTs?
  • How are SRTs and CRTs the same and different in the U.S. vs. the EU and the UK?