Bank of Ireland’s Soured Deals Show Hazard in Risk Transfer Boom

Deals Bank of Ireland’s Soured Deals Show Hazard in Risk Transfer Boom Investors have written down two risk transfer deals with Bank of Ireland Group Plc as the underlying loans deteriorate, a warning of the potential pitfalls involved in the increasingly popular trades. ArrowMark Financial Corp., a long-standing investor in significant risk transfers, valued the remaining bonds from a 2021 transaction at around 34 cents on the dollar in a report last month, down about 43% since the end of last year. The deal, originally worth $256 million, was done at a time when banks were issuing leveraged buyout loans that performed poorly after interest rates shot up.