Barclays 2014 Annual Report Download - page 331

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37 Structured entities continued
Securitisation vehicles
The Group uses securitisation as a source of financing and a means of risk transfer. Refer to Note 39 Securitisations for further detail.
The Group provides liquidity facilities to certain securitisation vehicles. At 31 December 2014, there were outstanding loan commitments to these
entities totalling £201m (2013: £195m).
Commercial paper (CP) and medium term note conduits
The Group provided £9.1bn (2013: £8.1bn) in undrawn contractual backstop liquidity facilities to CP conduits.
Fund management entities
Barclays has contractually guaranteed the performance of certain cash investments in a number of managed investment funds which have
resulted in their consolidation. As at 31 December 2014, the notional value of the guarantee was £585m (2013: £991m). The decrease is materially
driven by the closure of European wealth funds during the year.
Covered bonds
During the period the Group provided cash capital contributions totalling £0.7bn (2013: £1.3bn) to Barclays Covered Bonds Limited Liability
Partnership as a result of regulatory requirements to pre fund upcoming covered bond redemptions. This requirement is expected to increase as
more covered bonds approach their maturity in 2015.
Employee benefit trusts
The Group provides capital contributions to employee share trusts to enable them to meet their obligations to employees under share-based
payment plans.
Unconsolidated structured entities in which the Group has an interest
An interest in a structured entity is any form of contractual or non-contractual involvement which creates variability in returns arising from the
performance of the entity for the Group. Such interests include holdings of debt or equity securities, derivatives that transfer financial risks from
the entity to the Group, lending, loan commitments, financial guarantees and investment management agreements.
Interest rate swaps, foreign exchange derivatives that are not complex and which expose the Group to insignificant credit risk by being senior in
the payment waterfall of a securitisation and derivatives that are determined to introduce risk or variability to a structured entity are not
considered to be an interest in an entity and have been excluded from the disclosures below.
The nature and extent of the Group’s interests in structured entities is summarised below:
Summary of interests in unconsolidated structured entities
Secured
financing
£m
Short-term
traded
interests
£m
Traded
derivatives
£m
Other
interests
£m
Total
£m
As at December 2014
Assets
Trading portfolio assets – 14,538 – 3,668 18,206
Financial assets designated at fair value – – – 963 963
Derivative financial instruments – – 5,207 1,594 6,801
Available for sale investments – – – 1,216 1,216
Loans and advances to banks – – – 4,277 4,277
Loans and advances to customers – – – 30,067 30,067
Reverse repurchase agreements and other similar secured lending 37,139 – – – 37,139
Other assets – – – 38 38
Total assets 37,139 14,538 5,207 41,823 98,707
Liabilities
Derivative financial instruments – – 5,222 1,514 6,736
As at December 2013
Assets
Trading portfolio assets – 12,729 – 5,111 17,840
Financial assets designated at fair value – – – 1,035 1,035
Derivative financial instruments – – 3,758 1,464 5,222
Available for sale investments – – – 2,073 2,073
Loans and advances to banks – – – 4,143 4,143
Loans and advances to customers – – – 24,971 24,971
Reverse repurchase agreements and other similar secured lending 51,112 – – – 51,112
Other assets – – – 35 35
Total assets 51,112 12,729 3,758 38,832 106,431
Liabilities
Derivative financial instruments – – 4,895 1,457 6,352
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