<p><br/></p><p><font size="3">We review the limited available literature relating to markets for credit risk transfer. These markets<br/>help to complete incomplete financial markets for credit risk by facilitating the isolation of credit risk<br/>from other risks and extending the opportunities to manage credit risk. Yet, CRT markets give rise to<br/>additional risk management problems, and they also create new asymmetric information problems.<br/>Pricing for some CRT instruments also remains difficult. We identify the new problems created by<br/>CRT markets in terms of their effects on relationships between borrowers and lenders and between<br/>lenders and credit protection sellers. We also discuss how different forms of CRT instruments or<br/>contracts mitigate the problems to differing degrees. Finally, we identify three channels through which<br/>CRT markets may have financial stability implications: firms’ access to finance; monetary-policytransmission<br/>mechanisms; and interactions between markets.</font></p>