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Or sign-in if you have an account.The Bank of Montreal joins other Canadian banking peers that have discussed or priced such transactions this year. Photo by Peter Power/PostmediaBank of Montreal recently completed two significant risk transfers covering about US$5 billion of corporate loans, becoming the latest Canadian lender to tap strong investor demand for the instruments.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe Montreal-headquartered bank completed an SRT linked to a US$2.5 billion portfolio of large corporate loans through its Muskoka issuance program, according to people familiar with the matter. It also transferred risk on a separate US$2.5 billion portfolio of mid-market corporate loans through its Algonquin program, the people said, asking not to be identified because the deals are private.The bank joins national peers including Toronto-Dominion Bank, Royal Bank of Canada and National Bank of Canada that have discussed or priced such transactions this year. A representative for BMO declined to comment.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe Muskoka SRT consisted of a first-loss piece equivalent to more than seven per cent of the reference portfolio that priced at less than 700 basis points over a lending benchmark, the people said. The latest Algonquin transaction covered more than six per cent of the loan portfolio and priced in the mid-700 basis-point area. Both transactions were completed within the past two months, the people added.Investor appetite for SRTs has remained resilient even as broader credit markets have shown signs of strain amid geopolitical tensions, higher energy prices and concerns ranging from the impact of artificial intelligence on sectors such as software to the debt-fuelled expansion of data centres.European and Canadian banks account for most of the SRT market, which is on track to post record issuance for a sixth consecutive year, according to estimates from Crescent Capital, an investor in the asset class.SRTs allow banks to transfer part of the credit risk of a loan portfolio to third-party investors in exchange for a premium, freeing up regulatory capital. Banks have stepped up issuance amid persistent geopolitical and credit risks, while investors have been attracted by coupons that can exceed 10 per cent. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.