Barclays, it seems, is finally taking steps to trim its monoline exposure — but not without suffering a significant amount of pain.
From the bank’s just-released half-year results:
While Barclay’s stellar performance in investment banking and record income (some £16bn) — helped mitigate the impact of those credit writedowns (the £4.68bn above, compared with £3.33bn for the same period in 2008), the ongoing structured finance mess at Barclays is still, well, rather ongoing.
Note, for instance, that the bank now has a zero worth of credit wrapped by an AA or AAA-rated insurer — in fact it’s taken that category out from its results altogether. But it also now has zero wrapped by an A or even BBB-rated insurer:
Such are the ripples of the receding monolines.
Related links:
Barclays ahead 8% at halfway – FT.com
Barclays and the monoline minuet – FT Alphaville
The ongoing structured finance mess at Barclays – FT Alphaville