BNP Paribas Plans SRT Linked to Commercial Real Estate Loans

BNP Paribas SA is planning a significant risk transfer tied to commercial real estate loans, joining other lenders using such transactions this year to hedge their exposure to the sector.

The Paris-based bank is discussing an SRT tied to about €1 billion ($1.2 billion) of loans, according to people familiar with the matter, who asked not to be identified because the matter is private. The SRT would cover about 6% of the portfolio, the people said.

Prospects for commercial real estate have dimmed as global economic growth is dented by war in the Middle East. The impact of rising energy ...