Barclays Capital is starting a single name and portfolio swap financing program for leveraged loans. The British bank, which has been aggressively expanding its capital markets activities worldwide, has lured Phil Nisbet, director, and Kevin Kiely, associate director, from Citigroup, where they were responsible for a similar program. Both declined comment and a spokeswoman was unable to provide comment by press time. The two started two weeks ago.
There are similar desks also operating at J.P. Morgan, Bank of America and Scotia Capital, said a portfolio manager that uses swap financing. Though the market is more competitive than a year ago, spreads are still attractive and because of balance sheet requirements the big banks can be competitive. Barclays is starting with loans, but could move to funds-of-funds and bonds at a later stage. Citigroup officials did not return calls by press time. --Pierre Paulden