DBS Group Completes Inaugural Synthetic Securitization Transaction
MT Newswires
Jun 30
DBS Group (SGX:D05) completed its inaugural synthetic securitization transaction, referencing a $1 billion diversified portfolio of corporate loans, according to a company release on Tuesday.
The exercise was the first significant risk transfer transaction undertaken by a Singapore bank.
Following the deal, a portion of the referenced portfolio's credit risk will be transferred to investors, allowing the bank to reduce regulatory capital held against assets and redeploy it toward new lending.
Meanwhile, the bank will continue to own and service its underlying loans.
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