ECB’s Pedro Machado Calls for More Transparency in Synthetic SRTs

Synthetic SRTs sit precisely where bank balance-sheet management meets the broader risk-transfer market, so an ECB official flagging transparency touches both bank capital planning and the investors on the other side of these trades. The notable gap is that no specific disclosure or structural change was named, which leaves the scope of any future scrutiny undefined. Whether this stays a rhetorical nudge or becomes a concrete supervisory workstream is the open question for participants in this fast-growing segment.