Bank of Montreal transferred $5 billion in corporate loan risk in two separate transactions through its Muskoka and Algonquin programs. The Muskoka program, targeting large corporates, was priced below 700 basis points with a first-loss tranche representing over 7% of the $2.5 billion portfolio. The Algonquin program, focused on mid-market companies, was priced in the mid-700 basis-point range with a first-loss tranche of over 6%. Toronto-Dominion Bank, Royal Bank of Canada, and National Bank of Canada have also executed similar SRT transactions in 2026, with the global SRT market heading for a sixth consecutive year of record issuance.
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