SRT Sales Cost Likely to Rise as War Fuels Economic Uncertainty

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000War With Iran:Banks are likely to face higher costs in issuing significant risk transfers as investors become more demanding in the face of growing economic uncertainty, according to a Bloomberg Intelligence survey conducted when traders were already assessing the prospect of a US military intervention in Iran.Banks in Europe excluding the UK expect the cost to issue SRTs will rise to 14% of the capital relief benefit in 2027 from 11% in 2025, according to the survey of issuers and investors released Monday. For US banks the cost of issuing such transactions could rise to around 9% from about 6% of capital relief obtained with such transactions.