Report: BNP Paribas Completes SRT Transaction Linked to €5 Billion Loan Portfolio
According to people familiar with the matter, despite the recent increase in market volatility, BNP Paribas still sold Significant Risk Transfers (SRTs) linked to a €5 billion (equivalent to approximately $5.8 billion) loan portfolio, even though market volatility has recently surged. The bank priced SRTs for a €4 billion large corporate loan portfolio and a €1 billion pool of high-yield corporate loans (including leveraged buyout debt, LBO), respectively. The SRT was priced at approximately 750 basis points (i.e., 7.5%) above the benchmark rate. The final spread was higher than the levels discussed early in the sale because initial negotiations occurred before the United States and Israel launched the war against Iran. (Bloomberg)
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