Barclays has agreed to sell Blackstone around $1.1 billion in credit card debt in the US. The British bank claimed that this transaction would free up capacity to increase lending and lower risk on the balance sheet.
Barclays stated that the arrangement would lower the bank’s risk-weighted assets by about 1 billion pounds and represented its previously declared plan to prioritize expanding lending to customers.
As investors share the risk of losses, banks around the world are using credit risk transfers more frequently to reduce risk in their loan portfolios.
Laptops 1000Blackstone has invested through insurance accounts that are overseen by the asset-based financing arm of the corporation. For a price, Barclays will still handle the accounts’ maintenance.
Blackstone received transactional advice from the investment bank of Barclays. “We stated in our Investor Update that we would use strategic alliances to carry out risk transfer contracts to lower capital needs.”We are excited to share the news of this first deal in our U.S. cards book,” stated Anna Cross, director of Barclays Finance.
