Synthetic risk transfer market prompts alarm from EU banking watchdog
EBA raises concern over circularity of burgeoning credit-transfer market
EBA raises concern over circularity of burgeoning credit-transfer market

Securitisation deals to secure capital benefits were up 85% in the first half of this year

For some observers, the rapid rise of this asset class invites unsettling historical comparisons

Policymakers and banking industry should push for convergence on rules

The sector remains untested in a severe or prolonged economic downturn

Warning that banks may find it difficult to manage risks comes a day after HSBC disclosed $400mn hit

Global lenders explore private deals and risk transfers to cut exposure to AI boom