Barclays agree to offload derivatives to JPMorgan

Jamie Dimon

Barclays agreed to transfer a portfolio of derivatives contracts to JPMorgan, as the bank speeds up the sale of unwanted assets to reduce its capital requirements.

Bloomberg News reports that the portfolio consists mainly of interest-rate swaps, many of which are backed by collateral that will transfer to JPMorgan, according to a person with knowledge of the terms of the deal, who asked not to be identified because the information isn’t public. Rates swaps are usually classified as less risky and capital consumptive than equity or credit derivatives.

Barclays CEO Officer Jes Staley, 59, was hired last year with a brief to accelerate disposals of assets, such as derivatives and leveraged loans that have high capital requirements, to help restore profit growth. While the size of the transferred portfolio wasn’t disclosed, derivatives accounted for half of the risk-weighted assets in Barclays’s non-core division.

To access the complete Bloomberg News article hit the link below:

Barclays Agrees to Offload Derivatives Contracts to JPMorgan

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