Capital Relief Trades: Structuring considerations for synthetic securitizations (a three-part series providing a US and UK perspective)

Part one: Navigating US insurance and swap regulations

In this three-part series, we discuss regulatory considerations when structuring a US capital relief trade (CRT) as a synthetic securitization. Here, in part one, we analyze synthetic securitizations from the perspective of US banks—what makes synthetic securitizations attractive to them, how operational criteria differ from those for traditional securitizations under US capital rules and how US insurance and swap regulations introduce structuring challenges.