No job losses, though.
Bloomberg News reports that the firm no longer will regularly buy and sell the residential securities, which lack government backing, according to Adam Yarnold, the bank’s head of securitized-product trading in the U.S.
No traders will lose their jobs because its securities arm is allocating resources to other businesses, he said.
'This is a refinement to our strategy meant to improve our return on equity', Yarnold said in a telephone interview.
Barclays is scaling back from a market where most of the debt was cut to speculative-grade levels during the housing slump. U.K. regulators now require banks including Barclays to hold even more capital against such junk-rated securities relative to other bonds.
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