Article
TD Bank Taps Historical Investors for $5B Large Corporate SRT
TD Bank is closing in on a significant risk transfer, or SRT, transaction tied to a $5 billion portfolio of large corporate loans, according to market sources. The Canadian lender is looking to price the deal during the first quarter, with sources indicating it could price sometime in late January to early February.
The deal features a 0%-10% first-loss tranche. The underlying reference pool maintains a balanced risk profile, consisting of approximately 40% investment-grade and 60% high-yield loans representing roughly 140 to 150 borrowers.
Sources say TD has opted for a concentrated placement strategy rather than a broad market syndication and is prioritizing investors that it has worked with historically. Additionally, reports indicate that the bank has secured a single anchor investor to absorb a substantial portion of the deal, which is targeting an allocation of approximately $200 million.
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