Barclays is selling $12.3bn of assets to Protium Finance, a fund that purchases and manages credit market assets to benefit from long-term cash flows. Protium buys Barclays’ assets through a $12.6bn loan provided by Barclays and $450m of additional funds from Protium’s partners. The assets include $1.8bn of residential mortgage assets, $2.3bn of residential mortgage-backed securities (RMBS) and other asset-backed securities (ABS) assets and $8.2bn of assets insured by monolines. The assets remain on Barclays’ balance sheet for regulatory purposes, so the transaction will not reduce the regulatory capital requirement for the assets. The transaction is part of a move by Barclays to “manage down” its credit market exposures as it seeks to protect the interests of its shareholders. Barclays Capital acted as advisor to Barclays on the transaction. Chris Lucas, group finance director at Barclays, said in a company statement the transaction “represents a good opportunity to create greater predictability of income and economic capital utilization.” Lucas added: “We are not seeking through the transaction to effect a change to our underlying credit risk profile. But we are restructuring a significant tranche of credit market exposures in a way that we expect will secure more stable risk-adjusted returns for shareholders over time.” Write to Diana Golobay.
Barclays Sells $12.3bn of Assets to Protium Finance
Most Popular Articles
Latest Articles
Spring housing market gets more inventory
We’ve now had back-to-back weeks of healthy housing inventory growth, making spring 2024 much healthier than spring 2023.
-
The best real estate podcasts for agents and brokers in 2024
-
Home sellers saw their profits shrink in the first quarter: Attom
-
If reelected, Trump could seek greater control over Federal Reserve
-
Acra CEO Keith Lind on staying the course amid choppy waters in non-QM
-
HUD walks back some proposed changes to HECM for Purchase program