Banca Popolare di Bari €3 billion SME loan portfolio synthetic securitisation

Overview:

• Italian bank Banca Popolare di Bari has completed a €3 billion synthetic securitisation of SME businesses and residential mortgage loans.
• The transaction will allow the bank to shift the risk on first losses, the junior tranche of the securitisation, to Christofferson Robb & Company (CRC), an American fund.
• This transactions is the first time a bank in Italy with a standard credit risk model has used a synthetic securitisation to strengthen its capital.

Rajeeb Gurung - Researcher