SRTs to Get More Costly for Banks on Rising Supply, S&P Says

Banks that have benefited from an influx of new investors in the significant risk transfer market are set to face less favorable pricing as more lenders seek to tap the market, according to S&P Global Ratings.

Banks will also probably have to sell thicker tranches to free up capital when new rules known as the Basel endgame are introduced, the ratings firm said in a report on Wednesday.

Despite the blow from pricing, the final version of the regime will probably lead to further growth in the market. That’s because banks negatively affected by the new standards could look to ...