Synthetic securitisation

Roles that need it

• Structuring Analyst
• Credit Risk Analyst
• Capital Reporting Analyst

Skills it belongs to

• Securitisation and structured finance
• Credit analysis and creditworthiness

Related concepts

• SecuritisationSecuritisation is the operation by which a lender pools loans it has made (mortgages, car loans, loans to companies) and sells the right to their repayments to investors as securities, in slices that absorb losses in a set order. The lender frees capital to lend again. In the EU it is governed by the 2017 Securitisation Regulation.
• STS securitisation (simple, transparent and standardised)STS (simple, transparent and standardised) is an EU label for securitisations that meet criteria set by the Securitisation Regulation, verified by the originator and optionally by an authorised third-party verifier, and notified to ESMA. Banks hold less capital against STS positions than against other securitisations.
• Risk-weighted assets (RWA)Risk-weighted assets measure a bank's exposures adjusted for risk: each exposure is multiplied by a risk weight that reflects its credit, operational or other risk. Capital ratios divide capital by RWA, so RWA also sets how much capital a bank must hold. Also called risk exposure amount.

Sources

• Regulation (EU) 2017/2402 laying down a general framework for securitisation (Securitisation Regulation), EUR-Lex (external site) accessed 1 Nov 2026
• Regulation (EU) 2021/557 amending the Securitisation Regulation (synthetic STS), EUR-Lex (external site) accessed 1 Nov 2026

Updated 1 Nov 2026.