Barclays is beefing up its derivatives sales coverage for small and medium-sized corporates, through a reorganization of Barclays Business Banking's sales team. It plans to set up a similar sales structure to the one its sister company, Barclays Capital, uses to market products to the largest users of derivatives. Previously Barclays Business Banking had a handful of derivatives experts within its general advisory sales channel, but has now separated out the existing specialists and plans to hire more derivatives sales professionals. The division plans to make the new hires for the group by the beginning of September, according to Tim Kirkham, head of derivatives sales at Barclays Business Banking in London, who was hired to spearhead the effort. He added that there is no specific target number of hires and it is dependent on the talent available.
Volatile markets are driving the bank's clients, which include corporates, insurance companies and fund managers, to want to use a wider variety of methods to hedge their exposure to foreign exchange, interest rates, equity and inflation. The group will be focused solely on marketing structured products. There is potential to replicate this structure globally if it is successfully implemented in Europe, Kirkham said.
Mark Kibblewhite, managing director and head of European risk management at Barclays Capital in London, is coordinating the effort between the Business Banking group and Barclays Capital. Kibblewhite deferred comments to the press office.
