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May 28, 2019

A Decade After The Crash, Barclays Bets Again On Bundling U.S. Home Loans

 

Reuters
Lawrence White, Sinead Cruise

LONDON (Reuters) - Ten years on from the global financial crisis caused by a crash in bonds tied to U.S. 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, autos or commercial real estate, as such securitizations were demonized for their role in the crash.

But now Barclays is preparing to make its comeback, having assembled a team of over 140 securitization bankers and traders with plans to hire more as investors clamor for the higher returns such deals offer compared with traditional stocks and bonds. Read more.

 
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