Investors cheer Fed guidance on bank credit risk transfers

  ​  Institutions say clarification of regulations could jump-start US market 

Investors believe guidance issued last month by the US Federal Reserve could double the size of the market for bank credit-risk transfers and drive up returns for the firms buying them.

Over the past five years there has only been a trickle of CRT transactions issued by US banks; and since 2022, the New York Fed has significantly delayed the approval of credit-linked notes (CLNs) altogether, including for global systemically important banks. However, on September 28, the Fed released a short

 Institutions say clarification of regulations could jump-start US market 

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