The portfolio consists mostly of interest-rate swaps, reports Bloomberg, which would mean they're likely less risky and capital consumptive than equity or credit derivatives. The move, however, is part of Barclays' (BCS -2.5%) larger plan to speed exits of assets with high capital requirements. The size of the portfolio wasn't disclosed, but derivatives make up half of the risk-weighted assets in the bank's non-core unit. "Integrating this portfolio into our own business reiterates our commitment to the broader fixed-income markets and creates the opportunity for us to work with a wider range of clients over the long-term,” says JPMorgan (JPM -2.2%), which has a large derivatives portfolio giving it the chance to offset new positions with old, thus reducing the capital impact.
Barclays is to transfer a portfolio of derivatives contracts to JPMorgan as part of the UK bank 's ongoing plan to sell unwanted assets so as to meet its regulatory requirements . The portfolio consists primarily of interest - rate swaps , many of which are backed by collateral that will go to JPMorgan . Barclays will let those customers affected by the portfolio contracts know and the bank will need their consent before they can be moved to JP Morgan . UK banks are under regulatory pressure to shore up their capital buffers and get rid of risky or toxic assets from their balance sheets .