Barclays Plc struck a $1.1 billion deal with Blackstone Inc. this week to offload risks in its US credit-card business while still managing the accounts of its own customers. This obscure-sounding trade touches only a small part of its $32 billion US card book business, let alone the bank as a whole. But it is part of a growing trend of risk-transfer deals mainly by European banks to shore up their balance sheets and capital ratios.

The total volume of such deals hit nearly €200 billion ($215 billion) in 2022, the latest data available, of which about 63% came from UK and European institutions, according to data from the International Association of Credit Portfolio Managers. Apart from a dip in 2020, volume has been growing strongly since 2016.

QOSHE - Banks Are Back Into Credit Derivatives. Stay Calm. - Paul J. Davies
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Banks Are Back Into Credit Derivatives. Stay Calm.

12 1
29.02.2024

Barclays Plc struck a $1.1 billion deal with Blackstone Inc. this week to offload risks in its US credit-card business while still managing the accounts of its own customers. This........

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