Banks are issuing significant risk transfers at a record pace, with $41 billion of SRTs sold in 2025, up from $29 billion the previous year, according to Crescent Capital. Lenders from Europe and North America are using the tool to hedge a wider range of loans, including leveraged buyouts and fund financing. This marks the fifth consecutive year of record volumes for the asset class.

European and UK lenders dominate the market, accounting for over 70% of issuance, while US and Canadian banks contribute 21% and 4% respectively. Major institutions like Deutsche Bank, ING, and NatWest have signaled plans to increase sales, indicating continued rapid growth. The market has shown resilience to geopolitical events, including the Middle East conflict and Russia's invasion of Ukraine.

Loans to large corporates remain the most popular collateral type, representing nearly half of all SRTs. High-yield and leveraged loans now account for 11% of issuance, while fund finance deals make up 6%. BNP Paribas recently completed an SRT tied to US business development companies and is exploring additional transactions for wealthy clients and leveraged buyout financing. Banks typically obtain protection for 5-15% of loan value, improving solvency ratios and reducing reliance on equity issuance.