Morgan Stanley is reportedly in the process of arranging a significant risk transfer (SRT) associated with a $6bn portfolio of loans to private market funds. The SRT could amount to approximately $750m, representing 12.5% of the overall loan portfolio, reported Bloomberg, citing sources familiar with the transaction. SRTs serve as a mechanism for banks to secure insurance against loan defaults. These are often structured as credit-linked notes sold to pension funds, sovereign wealth funds, and hedge fun ...