Morgan Stanley Plans SRT Tied to $6 Billion Private Market Loans

Morgan Stanley is selling a significant risk transfer tied to a $6 billion portfolio of loans to private market funds, according to people familiar with the matter.

The potential size of the SRT could be about $750 million, equivalent to around 12.5% of the total loan pool, said the people, who asked not to be identified because the matter is private. A spokesperson for Morgan Stanley declined to comment.

SRTs allow banks to insure loans against default. They’re frequently issued in the form of credit-linked notes to pension, sovereign wealth and hedge funds, allowing the issuer to unlock capital they ...