Barclays plans to dabble in bundling US home loans again
London — Ten years on from the global financial crisis caused by a crash in bonds tied to US home loans, Britain’s Barclays is betting a return to that market can bring in bumper revenues to fortify its investment bank. After the crisis, banks initially shunned the business of selling and trading slices of loans tied to residential property, cars or commercial real estate, as such securitisations were demonised for their role in the crash. But now Barclays is preparing to make its comeback, having assembled a team of more than 140 securitisation bankers and traders, with plans to hire more as investors clamour for the higher returns such deals offer compared with traditional stocks and bonds. Having pared back its securitisation business in recent years amid a wider restructuring, Barclays’s head of global markets Stephen Dainton said the time was right for the British bank to re-enter the market in force. “This was a £500m business for Barclays in terms of revenues last year, when ...
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