Apollo Buys Most of Deutsche Bank SRT Linked to $3 Billion Debt

Apollo Global Management bought most of Deutsche Bank AG’s significant risk transfer linked to a portfolio of $3 billion in leveraged finance debt, according to people with knowledge of the matter.

The New York-based alternative asset manager took over 50% of the SRT transaction, said the people, who asked not to be identified because the transaction was private. The SRT was issued out of Deutsche Bank’s Loft program. Representatives at Apollo and Deutsche Bank declined to comment.

In SRTs, banks offload the risk of loan portfolios, holding on to the assets but paying investment firms to share future losses. ...