BNP Eyes Risk Transfers Tied to Buyout Financing, Lombard Loans

BNP Paribas SA is sounding out investors for two significant risk transfers tied to loans for wealthy clients and leveraged buyout financing.

One deal would be linked to about €1.5 billion ($1.8 billion) of leveraged buyout debt, according to people familiar with the matter, who requested anonymity as the discussions are private.

The French bank is also considering another transaction tied to a portfolio of so-called Lombard loans, a type of financing typically extended to high-net-worth clients and backed by liquid assets such as equities or bonds, said the people.

The SRTs are at an early stage and terms ...