Barclays has won best provider of interest rate-linked structured products three years in a row by continuing to put clients at the centre of its offering. According to Jeffrey Juan, managing director, head of EFS sales, non-Japan Asia, “Passion for your client, product and market,” has been the overwhelming characteristic of the team. Barclays continues to win business from private banks by focussing on innovation, high level of service, secondary market liquidity and offering a wide range of products.
2014 tested all market participants as the US Federal Reserve kept interest rates at record lows leading to low volumes for the rates-linked structured products. “Most market participants, including us, expected rates to rise this year and the market proved otherwise.” admits Juan.
A low interest rate environment combined with low volatility and tighter credit spreads posed challenges to structured products providers like Barclays. Juan stresses that understanding client needs is of paramount importance. “We have great trading and structuring business partners to help drive this business. We believe that innovation in current markets is about understanding local regulations, efficient execution and setting exemplary service standards across the entire life cycle of a product. Our dialogue with clients is ongoing – pre and post trade; our ability to react to changes whether our risk or our client’s risk makes us stand out,” Juan says.
Barclays responded to the demands of a new regulatory landscape by creating internal standards for product governance and increased transparency and disclosures. This in-house framework at Barclays includes a senior product approval committee that determines the suitability of every product and its distribution.
Barclays has continued to take a client-centric approach by delivering solutions to clients in the current market environment by balancing short and long term considerations. Barclays’ reputation for reliability and its commitment to client service means that it is now distributing interest rate-linked products to almost 30 banks, more than nearly any other issuer. With interest rates widely expected to rise in 2015, these relationships ensure that Barclays is well positioned to take advantage of higher volumes.
Juan cites that the team’s passion, combined with an emphasis on consistency is key to Barclays’ winning this award. “We can keep the momentum…everyone continues to work hard with great passion,” Juan insists. “If I was the client, I would expect to be treated the same,” he concludes. This dedication and rigorous focus on execution has ensured that Barclays has emerged as the deserving winner of the 2014 Best Provider of Interest Rate-linked Structured Products.