Brand Richey works in Loan Portfolio Management at Barclays Capital. He has been with the
team since its launch as a business in 1998. Before that he had worked in the Credit Risk
Department of BZW and in a number of roles within the Barclays group.
Barclays Capital has been at the forefront of the move towards credit portfolio management in the
European marketplace and this allows the firm to enhance its risk/return ratio through greater
liquidity and diversity of its credit portfolio, while enabling it to provide additional support to its
clients. Barclays Capital decided to establish a dedicated portfolio management function in early
1998, and by mid-1998 the Portfolio Management Group was operating as a distinct front-line
The Portfolio Management Group invests in and manages all assets and credit exposures,
originated for the firm's book. Its key function is active management of the credit portfolio to
optimise its performance against return on economic capital and value-added profit targets.
To achieve its performance and concentration targets, Barclays Capital has embraced many of
the techniques increasingly available to portfolio managers, including credit derivatives,
securitisation and physical trading. The sophisticated use of these instruments has enabled the
firm to support its client base to a far greater extent than would be possible using 'traditional'
credit management practices. It has also allowed the firm greater flexibility in developing and
executing proprietary structured debt products. To date, the rapidly growing credit derivatives
market, which offers ever more innovative solutions, has proved one of the most effective
markets in which to execute transactions to achieve portfolio optimisation. The flexibility of credit
derivatives is particularly well-suited for portfolio management, used both tactically and