Banks are increasingly using Significant Risk Transfers (SRTs) to shift credit risk to third parties, and private credit investors are buying in. It used to be a niche space, but an estimated $30-40 billion in deals took place in 2025. Investors like pension funds are using these to diversify beyond direct lending. Europe is currently the biggest market for this, representing about 70% of the volume, largely due to clearer regulations compared to the US. Returns have tightened a bit as the market matures and competition heats up. Yields are often in the high single digits for unlevered positions. There is some concern from regulators about transparency and how interconnected the banks and funds are, but firms like Ares and Pemberton view it as a maturing asset class.