Analysis-Wall Street Explores Novel Ways to Repackage Bank Loan Risk usnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from usnews.com Daily Mail and Mail on Sunday newspapers.
A financial product
that enables banks to shed risk from loan portfolios is gaining
more popularity among lenders in the United States, with
investors and lawyers devising new structures to broaden.
A financial product that enables banks to shed risk from loan portfolios is gaining more popularity among lenders in the United States, with investors and lawyers devising new structures to broaden its appeal. In deals known as credit risk transfers, banks effectively buy insurance from hedge funds and other investors against the risk of losses from loans. U.S. regulatory requirements set by the Federal Reserve restrict participation from insurance companies in these deals.