Deutsche Bank is developing an SRT tied to fund financing, part of a push to apply the securitization playbook to a wider range of assets. People familiar with the discussions say the potential deal would reference roughly $2 billion of subscription lines, and details such as the final size could change as investor feedback comes in. A Deutsche Bank representative declined to comment.
Subscription facilities are short-term lines that let private equity and private credit managers cover investments or expenses before calling capital from limited partners. Although most SRTs historically target corporate loan risk, stronger demand for these trades is nudging banks to bring different collateral into the mix. Standard Chartered has been working on an SRT linked to a pool of these loans. Earlier this year, certain investors together with Goldman Sachs Group Inc. examined a possible transaction tied to subscription lines, and NatWest weighed a comparable step.
Deutsche Bank's pipeline extends beyond fund finance. The bank intends to offload risk via an SRT targeting roughly $4 billion of large corporate loans. It has additionally explored an SRT referencing approximately €2 billion (about $2.3 billion) in project finance exposures, with assets such as data center loans included, and it has pursued a transaction connected to roughly €1.5 billion of lending to small and mid-size German enterprises.
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On a July analyst call, CFO Raja Akram said the bank intended to develop new SRT platforms aimed at opening further paths to regulatory capital relief. By the end of the second quarter, the SRTs had eased balance sheet pressure by roughly 75 to 80 basis points on its core equity tier 1 ratio.
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