Secured funding provides an alternative source of term liquidity for the Group balance sheet
Barclays issues asset-backed securities (ABS) and covered bonds that are secured primarily over high-quality customer loans and advances, such as corporate loans, credit cards, and residential mortgage loans. Barclays monitors and manages encumbrance levels related to these secured funding programmes.
Below is high level summary of our secured funding programmes. For an overview of structures, relevant investor reports, as well as prospectuses and documentation, please refer to Secured funding documentation.
Note that these summaries should not be regarded as exhaustive and are for information purposes only. They do not disclose the risks and other significant issues related to an investment in the securities and are not a prospectus for any of the securities described. Investors should only subscribe to securities described here based on the information and risk factors disclosed in the relevant prospectus.
Barclays securitises credit cards, residential mortgage receivables and corporate loans, through a variety of transaction structures.
Barclays securitises card receivables managed by our global credit card business, Barclaycard, including assets originated both in the UK and the US.
In the UK, we securitise assets principally via the Gracechurch Card Funding programme, whereas in the US, we use the Barclays Dryrock Issuance Trust structure, an SEC registered shelf backed solely by US domiciled assets originated by Barclays Bank Delaware.
Residential mortgage loans
Barclays securitises a proportion of its residential mortgage loan assets through GMFinancing and Genova structures.
Barclays issues Covered bonds from the Global Covered Bond Programme regulated by the UK Regulated Covered Bond legislation and the UK’s Financial Conduct Authority (FCA).
Barclays covered bonds are backed by UK residential mortgages and the programme is monitored on a monthly basis through a combination of tests such as asset coverage test and interest rate shortfall tests.