Reported 7 months ago
JPMorgan's risk transfer deal, one of the largest Synthetic Risk Transfer trades, involving shifting $20 billion of loan risks to investors such as DE Shaw & Co. and LuminArx Capital Management, has led to rival banks like Nomura Holdings Inc., Morgan Stanley, and NatWest Group Plc acting as lenders to investors in SRTs, along with Banco Santander SA and Standard Chartered Plc. Banks borrowing money from other banks to finance stakes in these transactions are causing concerns among regulators as the loans tie potential risks back to the banking system.
Source: YAHOO