Credit Default Swap: What It Is and How It Works

A credit default swap (CDS) is a contract that protects lenders from borrower default. Learn how a CDS works, why they’re ...
nationalmortgageprofessional.com

Fannie Mae Transfers Credit Insurance Risk On $31.8B In Loans

CIRT 2023-2 and CIRT 2023-3 transferred a combined $926 million of mortgage credit risk to private insurers and reinsurers. Fannie Mae said Monday it has executed two credit insurance risk transfer ...
Hosted on MSN

Lenders Tout a New Way to Transfer Risk, but Why Bother?

Ally Financial has joined the ranks of banks doing deals known as synthetic credit-risk transfers. These deals—for a price—might make lenders look less risky for certain purposes. They don’t transfer ...
Financial Advisor

JPMorgan Is Selling A New Type Of Mortgage Credit Risk Transfer

JPMorgan Chase & Co. plans to sell credit risk on a $531 million portfolio of adjustable-rate mortgages, a new kind of offering by the bank and the latest example of the industry’s efforts to de-risk ...
HousingWire

Bipartisan group of senators to FHFA: Expand, clarify credit risk transfers

[Update 1: An earlier version of this article stated Senator Mike Crapo was from Indiana. It is now corrected to say Idaho.] A bipartisan group of Senate Banking Committee members wrote a letter ...
American Banker

Are credit-linked notes a good way for regional banks to offload risk?

Banks that have entered into billions of dollars of credit-linked notes transactions or gotten approval to do so recently include U.S. Bancorp in Minneapolis, Huntington Bancshares in Columbus, Ohio, ...