Jain Global Seeks Regulatory Capital Business

Bobby Jain is launching a new fund led by an ex DE Shaw portfolio manager to invest in bank capital relief trades or SRTs (significant risk transfers), allowing banks to transfer credit risk from their loan portfolios to external investors - it's also known as "RWA optimization". The benefit to the bank is that it reduces the capital it has to hold. Investors receive a premium for absorbing potential losses. "Basel III Endgame" is expected to increase demand for these services.