Christofferson Robb

In Parts 1, 2 and 3 of this four-part series, we introduced the Risk Sharing Transactions (RSTs) banks utilise to optimise Tier 1 Capital (CET1) ratios and the regulatory framework underpinning their development. We then went on to explain the economic rationale for the banks that issue RSTs. In this fourth and final part, we’ll set out some key considerations for investors.

In Parts 1 and 2 of this four-part series, we introduced the Risk Sharing Transactions (RSTs) banks utilise to optimise their Tier 1 Capital (CET1) ratios in accordance with the risk-weighting regime set by the Bank for International Settlements (BIS) in order to meet the capital ratio requirements mandated by the Basel III framework.

In Part 1 of this four-part series, we introduced Risk Sharing Transactions (RSTs) and the vital role they play in helping banks to optimise their Tier 1 Capital Ratios (CET1).