Nordea Bank €8.4 billion synthetic risk transfer securitisation

24/8/2016
Derivatives, Securitisation

€ 8.4 billion

$ 9.448 billion

Completed

24/8/2016


Overview:

  • Nordea Bank is set to sell credit default swaps (CDS) relating to an €8.4 billion corporate loan portfolio through a collateralised structure.
  • The deal will allow the bank to shift credit risk to a select portfolio of investors.
  • Investors have invested in notes linked to the junior credit risk of the CDS portfolio. Under the obligations of the CDS portfolio, securities governed by both English and Swedish law were granted.
  • Nordea estimates that this securitisation will shave 30 points off its Tier 1 Common Capital Ratio. 

Morris Seifert - Journalist

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