Overview of Credit Risk Transfer Market

Rhujuta Kene is senior consultant with Banking Domain Competency Group within Infosys Technologies Limited. She can be reached at rhujuta_kene@infosys.com. Views expressed here are her personal views.

Executive Summary

Credit Risk Transfer (CRT) facilitates reallocation of credit risks across financial and non-financial sectors of the economy. Emergence of the CRT market can be attributed to the needs for active management of acceptable risks, mitigation, offloading and distribution of undesired risks, yield improvement, and portfolio diversification.