Deutsche Bank (DB) is selling a significant risk transfer, or SRT, tied to $3 billion in corporate loans through transactions involving the sale of notes in exchange for yields that can frequently top 10%, Bloomberg News reported Friday, citing unnamed sources familiar with the matter.
The loans are in Europe and North America and the SRT is about 8% of the loans or around $240 million, according to the report.
Bloomberg said SRTs allow banks to buy insurance on debt and free up capital while keeping the assets on their books.
Deutsche Bank did not immediately respond to MT Newswires' request for comment.
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