Skip to main content
Marsh logo

Report

Expanding the Portfolio Management Toolkit

A Primer on CRT Solutions for North American Banks

Get the full report

Exploring credit risk transfer (CRT) solutions for North American banks

In today’s complex financial landscape, North American banks face substantial cyclical and structural challenges. These include a difficult interest rate and credit environment, changes to capital rules, and increased competition from non-bank credit providers — impacting the business models of traditional banks, and subsequently creating uncertainty and volatility.

One increasingly popular option for addressing these challenges is the use of Credit Risk Transfer (CRT) solutions, which can help banks mitigate credit risk, enhance capital efficiency, and build strategic partnerships with insurers and private capital managers.

Solutions amid growing headwinds

Drawing on our collective expertise in executing Non-Payment Insurance (NPI) and CRT/Significant Risk Transfer (SRT) transactions for North American and European banks, Marsh, Guy Carpenter, and Oliver Wyman collaborated on a joint Marsh McLennan report: Expanding the portfolio management toolkit: A primer on Credit Risk Transfer (CRT) solutions for North American banks.

The report provides a detailed overview of the process, benefits, and strategic considerations involved in establishing CRT programs, structuring and distributing CRT solutions, and assessing the financial impacts.  A wide range of CRT mechanisms are explored, highlighting how they can improve banks’ credit portfolio management. The report also looks at the European SRT market’s history to illustrate the potential for CRT solutions in North America, with an emphasis on the significance of regulatory developments and the strategic benefits of adopting CRT solutions.

For banking professionals, investors, financial strategists, and more, this report offers essential insights on the role of CRT solutions in advancing portfolio management, along with valuable perspectives on the evolution of the broader CRT market.

Expanding your portfolio management toolkit with CRT solutions

Marsh McLennan, with the combined capabilities of Marsh, Guy Carpenter, and Oliver Wyman, provides key insights on CRT solutions for North American banks.

Get the full report

Meet the authors

Oliver Wyman:

  • Julian Gorski, Partner, Corporate and Institutional Banking
  • Randy Lampert, Principal, Finance and Risk
  • Paulina Symala, Associate, Corporate and Institutional Banking
  • Roshannah Gaur, Consultant

Guy Carpenter:

  • Michael Shemi, Managing Director, North America Structured Credit Leader
  • Jeffrey Krohn, Managing Director, Mortgage and Structured Credit Segment Leader
  • Timothy Armstrong, Managing Director, Mortgage & Structured Credit
  • Andrew Feachem, Managing Director, EMEA Structured Credit Leader

Marsh:

  • Azzizza Larsen, Senior Vice President, Lenders Solutions Group Leader for US & Canada
  • Mark McLeod, Managing Director, US Structured Credit & Political Risk Practice Leader, Credit Specialties
  • Marcus Miller, Managing Director, Global Lenders Solutions Group Leader, Credit Specialties

Related insights

One of politician sitting by table with his hands over document during political summit or conference

Article

Increased exposure for executives as SEC approves clawback rule

09/06/2023
Male hand is pointing on a high technology futuristic digital screen with financial analytics

Article

How can hypergrowth companies manage risk in a downward valuation cycle?

07/08/2022
Finger on ipad obtaining statistics and analysing data

Article

As scrutiny increases, BNPL businesses should take action

10/05/2021
Placeholder Image

Article

Innovative Insurance Protection for Digital Assets

07/13/2021