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Reuters

Reuters

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Business & Economics

US banks modest use of risk transfers is credit positive, Moody's says

Reuters
Summary
Nutrition label

81% Informative

In deals known as credit risk transfers, banks effectively buy insurance from hedge funds and other investors against the risk of losses from loans.

They grew in popularity in 2022 as regulators proposed increases to capital requirements for large banks.

Still only 15 out of 69 U.S. banks surveyed by Moody’s issued CRTs and their use was relatively modest.

VR Score

93

Informative language

100

Neutral language

60

Article tone

semi-formal

Language

English

Language complexity

53

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

medium-lived

External references

no external sources

Source diversity

no sources

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