SRT Sales Hit Record Pace as Banks Expand Use to Hedge Risks (1)

Banks are issuing significant risk transfers at a record pace as they use the tool to hedge a wider range of loans, including leveraged buyouts and fund financing.

Lenders, mostly from Europe and North America, issued $41 billion of SRTs in 2025, up from $29 billion the previous year, according to credit investor Crescent Capital. That puts SRTs on track to grow more than 20% this year, with no sign of deal delays from the conflict in the Middle East, Juan Grana, its head of bank capital solutions, told Bloomberg.

Issuance of SRTs — a way for banks ...