Santander Pitches Buy Now, Pay Later Loan Risk to Investors

Banco Santander SA is considering hedging a portfolio of buy now, pay later loans for the first time via the booming market for significant risk transfers.

The Spanish lender is discussing with investors an SRT tied to around €500 million ($588 million) of loans made by its digital banking arm Openbank to clients in Germany, according to people familiar with the matter. The terms of the potential transaction could change as the sale proceeds, the people said.