Barclays is considering a push into riskier debt trading and a return to dealing in complex credit products in the U.S., according to a person familiar with the strategy.
Bloomberg News reports that Adeel Khan - the trader who has driven rapid growth in credit trading over the past two years - may hire more staff and allocate capital in the British bank’s small distressed business, which has historically lagged U.S. rivals, said the person, who asked not to be identified as the plans are in the early stages. Executives also want to expand in U.S. structured credit, especially collateralized debt obligations, or CDOs, building on its recent success with the instruments in Europe, the person said.
CEO Jes Staley is encouraging the investment bank to take more risks and recapture market share after years of retrenchment. To give the division more capital to work with, he’s sold the bank’s African and European consumer networks, slashed shareholder payouts and cut loose tens of thousands of low-returning corporate clients to prioritize the world’s elite fund managers.
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