Europe's Risk King? Santander Lines Up 45B Firehose of Asset Transfers for 2026

Banco Santander SA SAN is signaling another busy year in risk transfers, with management indicating that 2026 activity could mirror the scale of 2025. Sergio Gamez, global head of capital, profitability management and asset desk, said the bank is likely to shift between 40 billion and 45 billion of risk-weighted assets through significant risk transfers and related tools. He pointed out that steady regulatory support and constructive political backing are helping to sustain investor appetite, which policymakers also hope will reinvigorate Europe's 1.2 trillion securitization market and channel funds into housing, energy, and defense.

Santander has built a reputation as one of the world's leading issuers of SRTs, with programs spanning from Spanish SME and mortgage loans to portfolios across Portugal, Uruguay, Mexico, and Latin America. Discussions are underway on at least eight new deals, including unfunded credit protection structures under its Fortaleza and Aracataca programsformats often favored by insurers. Investor conversations also extend to auto loan portfolios in Norway and the UK. Gamez noted that Latin American transactions are gaining traction, reflecting rising demand from global investors, though final terms remain subject to negotiations.

Market analysts suggest that global SRT volumes could rise by roughly 11% annually over the next two years, drawing participation from banks such as Banco BPM, Macquarie Capital, Deutsche Pfandbriefbank, and UBS. For Santander, the strategy is twofold: fortify capital ratios while freeing resources to support expansion, including a multiyear plan to return over 10 billion through share buybacks. With regulatory momentum building and institutional interest holding firm, SRTs could remain central to how the bank balances growth, capital management, and shareholder returns.