07:50 AM EDT, 05/23/2024 (MT Newswires) -- Banco Santander (SAN) is weighing interest for synthetic-risk-transfer, or SRT, transactions tied to over $6 billion in loans, Bloomberg reported, citing unnamed people familiar with the matter.

SRTs are becoming a popular way for banks to insure their loans against default by selling credit-linked notes to investors. In so doing, lenders have to reserve less of their capital to meet regulatory provisions, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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