Bank of Montreal just moved $5 billion worth of corporate loan risk off its books in two separate transactions, joining a crowded field of Canadian lenders racing to capitalize on surging investor appetite for synthetic risk transfers. The two deals, executed within the last two months, split evenly between BMO’s Muskoka program and its Algonquin program, each handling $2.5 billion in corporate loans. The bank gets regulatory capital relief without actually selling anything, and investors get paid for taking on the riskiest slice of the portfolio. Toronto-Dominion Bank, Royal Bank of Canada, and National Bank of Canada have all executed similar SRT transactions in 2026. When a bank can price a large corporate SRT below 700 basis points, it means investor capital is chasing these products aggressively.