Warren Kornfeld, a Senior Vice President at Moody’s Ratings with expertise in banking, and Farooq Khan, a VP-Senior Analyst also at Moody's and based in London, dive into the intricacies of credit risk transfers. They discuss the balance banks strike by offloading credit risk, exposing both benefits and challenges. The conversation sheds light on counterparty risks, regulatory dynamics in the U.S. versus Europe, and the implications of semi-retail transactions. Transparency and investor concentration are key concerns as these transactions reshape capital management strategies.
