Barclays 2009 Annual Report Download - page 111

www.barclays.com/annualreport09 Barclays PLC Annual Report 2009 109
Barclays Capital credit market exposures
Barclays Capital’s credit market exposures as at 31st December 2009 primarily
relate to commercial real estate and leveraged finance. These include
positions subject to fair value movements in the income statement and
positions that are classified as loans and advances and as available for sale.
The balances at and gross writedowns to 31st December 2009 are set
out below:
During the year ended 31st December 2009, these positions have been
reduced by £14,130m to £27,609m (31st December 2008: £41,739m),
including net sales and paydowns of £6,590m, gross writedowns of £6,086m
and a decrease of £4,226m due to currency and other movements. In
addition, on 16th September 2009, £5,087m credit market assets and
£2,367m other assets were sold to Protium Finance LP, funded by a
£7,669m loan extended by Barclays. The loan balance at 31st December
2009 of £7,859m includes accrued interest.
In the year ended 31st December 2009, gross writedowns comprised
£4,417m (2008: £6,290m) of fair value losses through income and
£1,669m (2008: £1,763m) of impairment charges. Gross writedowns
included £2,082m (2008: £5,584m) against US residential mortgage
positions, £3,007m (2008: £1,488m) against commercial mortgage
positions, and £997m (2008: £981m) against other credit market positions.
Barclays Capital credit market exposuresaAs at 31st December Year ended 31.12.09
Fair value Impairment Gross
2009 2008 2009 2008 losses charge losses
Notes $m $m £m £m £m £m £m
US Residential Mortgages
ABS CDO Super Senior A1 3,127 4,526 1,931 3,104 – 714 714
Other US sub-prime & Alt-A A2 2,254 11,269 1,392 7,729 531 555 1,086
Monoline wrapped US RMBS A3 92,389 61,639 282 – 282
Commercial Mortgages
Commercial real estate loans and properties B1 12,525 16,882 7,734 11,578 2,466 – 2,466
Commercial mortgage-backed securities B1 762 1,072 471 735 44 – 44
Monoline wrapped CMBS B2 49 2,703 30 1,854 497 – 497
Other Credit Market
Leveraged FinancebC1 8,919 13,193 5,507 9,048 – 396 396
SIVs, SIV-Lites and CDPCs C2 896 1,622 553 1,113 69 4 73
Monoline wrapped CLO and other C3 3,443 7,202 2,126 4,939 528 – 528
Total exposures 31,984 60,858 19,750 41,739
Total gross writedowns 4,417 1,669 6,086
Loan to Protium D12,727 –7,859 –
Notes
aAs the majority of positions are denominated in US Dollars, the positions above are shown in
both US Dollars and Sterling.
bIncludes undrawn commitments of £257m (2008: £531m).