BMO completes SRTs tied to US$5 billion of corporate loans

Bank of Montreal (BMO) has completed two significant risk transfers (SRTs) covering approximately US$5 billion of corporate loans, making it the latest Canadian bank to utilize these instruments. SRTs allow banks to transfer credit risk to third-party investors, releasing regulatory capital and attracting investors with high coupons. This move aligns BMO with other Canadian peers who have also engaged in such transactions amidst strong investor demand.