Inside Wall Street’s ‘SRT’ phenomenon
What is ‘synthetic risk transfer’ and how much should regulators be watching this growing trend?
Behind the Money · Manuela Saragosa
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Show Notes
Every so often a cool new financial innovation springs up and gains popularity on Wall Street, promising juicy returns for investors. That’s why “synthetic risk transfers” or SRTs are in fashion. But ever since the financial crisis, trendy acronyms have also made some people nervous. And it’s recently caught the attention of organisations such as the IMF. The FT’s Alphaville editor Robin Wigglesworth explains why he’s been following this and whether regulators should be raising the alarm.
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For further reading:
Inside Wall Street’s booming $1tn ‘synthetic risk transfer’ phenomenon
Private credit is even larger than you think
Make Europe (securitisation) great again
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Follow Robin Wigglesworth on Bluesky (@robinwigglesworth.bsky.social) or on X (@RobinWigg). Michela Tindera is on X (@mtindera07) and Bluesky (@mtindera.bsky.social), or follow her on LinkedIn for updates about the show and more.
Read a transcript of this episode on FT.com
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