Inside Wall Street’s ‘SRT’ phenomenon

华尔街的“SRT”现象内部

Behind the Money

2025-01-22

19 分钟
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Every so often a cool new financial innovation springs up and gains popularity on Wall Street, promising juicy returns for investors. That’s why “synthetic risk transfers” or SRTs are in fashion. But ever since the financial crisis, trendy acronyms have also made some people nervous. And it’s recently caught the attention of organisations such as the IMF. The FT’s Alphaville editor Robin Wigglesworth explains why he’s been following this and whether regulators should be raising the alarm.  - - - - - - - - - - - - - - - - - - - - - - - - - -  For further reading: Inside Wall Street’s booming $1tn ‘synthetic risk transfer’ phenomenon Private credit is even larger than you think Make Europe (securitisation) great again  - - - - - - - - - - - - - - - - - - - - - - - - - -  Follow Robin Wigglesworth on Bluesky (@robinwigglesworth.bsky.social) or on X (@RobinWigg). Michela Tindera is on X (@mtindera07) and Bluesky (@mtindera.bsky.social), or follow her on LinkedIn for updates about the show and more. Read a transcript of this episode on FT.com Hosted on Acast. See acast.com/privacy for more information.
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  • If there's one ghost that's haunted Wall Street since the 2008 financial crisis,

  • it would be the three letter acronym.

  • There's this natural understandable fear of three letter acronyms and finance.

  • You know, I've heard people say beware of bankers and their acronyms.

  • That's Robin Wigglesworth.

  • He's the editor of the FT's financial blog, Alphaville.

  • I talked to him the other day from our office in London,

  • and what he's referring to are things like CDOs and MBSs,

  • these complex financial products that brought the whole system crashing down.

  • And Robin says that recently,

  • There's a new three letter specter that's spooking Wall Street's watchers.

  • Well, it goes by the acronym SRT or synthetic risk transfer.

  • And, you know, SRTs, it almost sounds tragic, comically obtuse and dangerous, right?