(Bloomberg) -- Christofferson Robb & Co. and GoldenTree Asset Management are set to invest in an Intesa Sanpaolo SpA significant risk transfer that’s linked to a debt portfolio of about €1.5 billion ($1.6 billion), according to people familiar with the matter.

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The money managers will each take about 50% of the SRT that’s tied to a selection of commercial real estate loans, said the people, who asked not to be identified because the matter is private.

Representatives for Intesa, CRC and GoldenTree declined to comment.

SRTs, also known as synthetic risk transfers, allow banks to insure their loans against default by selling notes to investors such as pension, sovereign wealth and hedge funds. For banks, the benefit is that they are able to tie up less of their own capital to meet regulatory requirements. Some of the SRTs have been priced at a yield in the low double digits.

Loans tied to significant risk transfers have reached about $1 trillion, with deals running at the fastest pace on record for the fourth year in a row, according to data compiled by Chorus Capital Management.

CRC has invested more than €1.5 billion in the SRTs of European banks in 2023 for the third year in a row, according to its website. GoldenTree has also been an active participant in this market, founder Steven Tananbaum told Bloomberg Television in July.

Intesa’s SRT size could be the equivalent of about 7.5% of the loan portfolio, some of the people said. The deal terms are yet to be finalized, the people said. The lender has been working on SRTs linked to at least €4.5 billion of loans, Bloomberg reported in July.

Other recent European transactions include Banco Santander SA’s sale of an SRT linked to a portfolio of about ￡1 billion ($1.3 billion) in UK consumer loans. HSBC Holdings Plc is also issuing an SRT linked to a portfolio of about €2 billion of corporate loans, Bloomberg reported earlier this month.

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