UniCredit Plans New SRT Amid Choppy Markets, Banco BPM Takeover

UniCredit SpA is working on a significant risk transfer transaction tied to a portfolio of about €1.2 billion ($1.36 billion) of factoring contracts, according to people familiar with the matter.

The discussions with investors are at an early stage with terms and deal size subject to change, said the people who asked not to be named as the matter is private.

SRTs are a way for banks to insure loans against default by selling credit-linked notes to pension, sovereign wealth and hedge funds. Lenders are able to boost their solvency ratios to pursue growth opportunities or bolster capital provisions against ...