Risk Mitigation Tools

Credit Portfolio Managers are increasingly employing risk mitigation techniques to expand banks’ lending capacity while complying with risk appetite and evolving prudential regulations.

The white paper below provides an overview of the various risk transfer tools utilized, their purpose and impact, as well as the volumes and trends identified in global surveys conducted by the IACPM on private risk-sharing tools such as credit insurance and Significant Risk Transfer (SRT) securitizations.

White Paper: Overview of Risk Mitigation Techniques in Credit Portfolio Management

Article: Private Risk Sharing Protected €18.5 Billion of Banks’ Junior Tranches in Synthetic Securitizations in 2023, Despite Ongoing Uncertainties in Final Regulatory Treatment 

IACPM Research

• Data Exercise on European SRT Securitisation (ongoing)
• Synthetic on Balance-Sheet Securitization Survey (FY2023) – select high-level results (please inquire for additional FY2023 data)
• Credit and Political Risk Insurance (2023)
• Effective use of Capital Relief Trade Transactions (2020)
• Credit Insurance Pre-Summit survey (2019)
  
• US CDS Market volume (2016)