SRT Deals Seen Reaching Record of Over $30 Billion, Chorus Says

Sales of significant risk transfers are seen hitting a fresh record this year, as banks expand the use of these products to bolster their solvency and profitability ratios, according to Chorus Capital Management.

Issuance is estimated to rise to a range of $30 billion to $35 billion in 2025, compared to around $29 billion last year, according to a report from the asset manager, which is one of the largest investors in SRTs. That would be a fifth straight record year for sales of the securities, which are also known as risk-sharing transactions.

SRTs enable banks to reduce credit ...