The Financial Post reports in its Tuesday edition that Toronto-Dominion Bank is gauging demand for a "significant risk transfer" tied to about $5-billion (U.S.) of corporate loans, a mix of investment grade as well as high-yield loans, according to unnamed sources. A Bloomberg dispatch to the Post says that terms of the transactions are subject to discussions with investors. Banks use significant risk transfers as a way to insure loans against default, typically obtaining protection for between 5 and 15 per cent of the loan value. The transactions, often structured as credit-linked notes, allow lenders to boost solvency ratios and reduce reliance on options like issuing new equity or cutting dividends. They also increase leeway for new lending, acquisitions or shareholder payouts.