Associate

An applicant / hire who is studying for/has received an advanced degree (MBA, MSc, MiF, PhD etc), with at least 3 years of continuous, professional work experience obtained after a bachelor’s (or equivalent) degree.

Bond

A security issued by a borrower as receipt for a loan longer than 12 months, indicating a rate of interest and date of repayment.

Capital Markets

Markets in which long-term capital is raised by industry and commerce, the government and local authorities. The money comes from private investors, insurance companies, pension funds and banks. The presence and sophistication of their capital markets distinguishes industrial countries from developing countries in that this facility for raising industrial and commercial capital is either absent or rudimentary in the latter.

Collateralised Finance

Collateralised Finance includes prime brokerage and equity financing. At Barclays Capital the collateralised finance group includes prime brokerage, equity borrowing and lending, corporate bonds, US government and agency borrowing, lending and repo and futures clearing and execution services. It is contained within Global Markets.

Commercial Paper

A short-term security issued to raise money, typically under one year and traded on a discount basis.

Commodities

Metals, Energy, European Power & Gas are the three main commodities areas in which we offer expertise. Corporations need to protect themselves against fluctuations in the price of such basic products. We advise on the full range of economic exposure facing firms.

Compliance

Legally required adherence to regulatory provisions by financial bodies and individuals. The principal purpose of Compliance is to ensure that Barclays Capital's business is conducted in accordance with the law.

Convertible Bond

A bond that can be converted into a predetermined number of shares of equity in the same company.

Corporate Bonds

A security issued by a corporate borrower as receipt for a loan longer than 12 months, indicating a rate of interest and date of repayment.

Coupon

The rate of interest payable on a bond (sometimes also used to mean the fixed rate on a swap).

Credit

The business of making and pricing loans and of assessing the ability of the borrower, whether company or country, to repay them.

Credit Derivative

Broadly defined as a derivative contract whose value changes with regard to changes in the credit risk of an underlying reference credit.

Credit Rating

A judgement placed on a borrower’s capacity to pay up. For example, AAA, is a good credit rating given by a rating agency such as Standard and Poor's or Moody's and indicates a borrower’s capacity to pay interest and principal on a bond or note issue.

Credit Risk

Credit Risk is assessing the financial and business risk involved in lending to particular counterparties. Relevant factors would include, but are not limited to, a company’s competitive position within its industry, strategic direction, management quality and financial profile.

Debt Capital Markets (DCM)

The area of an investment bank responsible for the issuance and pricing of bonds and other debt securities. DCM is involved in the bond product, providing credit rating advice for corporates, organising bond finance using a pool of investors and offering derivative solutions for risk management. This area also trades bonds in the secondary marketplace. DCM also includes the securitisation businesses, which are involved in repackaging and selling financial or corporate assets to the market place.

Derivative

A manufactured financial instrument, the value of which changes with movements in an underlying asset, index or interest rate. Primarily used for risk management purposes.

Ecommerce

Ecommerce is a significant area of focus for Barclays Capital and we now offer clients electronic services in fixed income, foreign exchange, futures and options, equities, commodities and research. Barclays Capital recently launched electronic trading in dollar-denominated interest rate swaps on its Barclays Automated Real Time Execution system, the first time that a single dealer has offered electronic trading in such products. We were also the first to introduce single dealer electronic trading of interest rate swaps in euros and sterling from our London office.

Emerging Markets

We offer risk management solutions in a variety of asset classes to clients in a number of geographical locations. The team operates from regional hubs in London, New York and Singapore as well as from local trading desks in Bangkok, Hong Kong, Johannesburg, Mumbai, Sao Paulo and Seoul.

Equities Lending

Equities Lending involves the loaning of securities to meet the temporary borrowing needs of clients and counter parties. The service can include lending for short sale strategies as well as lending to other counterparties, including the investment bank sector.

Equity

General term for the ordinary shares of a company, especially a publicly owned quoted company.

Equity-linked products

Financial products that are linked to the share capital of companies. Our trading teams are active in European, US and Asian stocks, indices and funds.

Eurobonds

An international bond issued in Europe or elsewhere outside the country in whose currency the value is stated.

Exotic

A term used to highlight the complexity of a product. New variations are born every day and there are exotic swaps, exotic options etc. The term ‘exotic’ distinguishes the product from the more basic version, which is known as ‘vanilla.’ (i.e. vanilla swap or vanilla option) because it is simple.

Financial / Product Control

Finance is divided into Financial Control and Product Control. Financial control is responsible for the recording and reporting of our business activity. Product Control is responsible for ensuring the integrity of the balance sheet for revenue products, and providing detailed explanations of income.

Financial Risk Management

Financial Risk Management is about evaluating the financial risk posed by the bank’s activities. In order to manage financial risk, we need to calculate both the market risk and credit (or counter-party) risk. Within Barclays Capital these activities are undertaken in Global Financial Risk Management.

Fixed Income

Financial instruments that make fixed payments of return over their duration and upon their maturity, such as bonds.

Fixed Income Market

The market for trading bonds and preferred stock.

Fixed Income Sales

Includes sales of our liquidity products or products with a view on interest rates, foreign exchange, and/or credit risk.

Fixed-Rate Bonds

Bonds with a fixed rate of interest.

Floating Rate Note (FRN)

A bond issue which pays a floating rate of interest, usually reset every 3 or 6 months.

Foreign Exchange (FX)

The trading of currencies to allow companies to trade goods across borders and to maximise returns on interest rate investments internationally.

Futures

A contract to buy or sell a specified amount of a commodity, asset, foreign currency or interest rate on an agreed date and at an agreed price. Many of the products structured and traded by investment banks will involve futures at some level. At Barclays Capital futures are at the heart of our business and are traded on behalf of a diverse global client base.

Global Financing

Global Financing provides financing and risk management solutions for sovereign, corporate and institutional clients all over the world. It is the centre of our credit focused services and is divided into three main product areas: Global Credit Products, Investment Banking and Structured Capital Markets.

Global Markets

In Global Markets we share our instincts and expertise with our investing clients, helping them to manage their assets and liabilities with a sophisticated portfolio of risk management products. Trading is the typical role in Global Markets and the financial products we trade are related to interest rates, foreign exchange, equities and commodities.

Government Bonds

Bonds secured on the government's ability to raise taxes.

Hedge Funds

Specialist funds that take positions using credit or borrowed capital. Managers often invest in liquid instruments, such as currency and interest rate derivatives, with the aim of making profits from movements in foreign-exchange or bond markets. Hedge funds are increasingly big clients for our collateralised finance business.

High Yield

A high-risk bond with a credit rating that is below investment grade. Also known as a’ junk’ bond, a term meant often used pejoratively to suggest its potential lack of worth.

Human Resources

The Human Resources (HR) function provides critical support and advice to line management. The attraction, retention and development of high calibre people is a source of competitive advantage for our business, and is the responsibility of HR.

Institutional Investors

These large investors that buy and sell stocks and bonds in large volumes include mutual funds, banks, insurance companies, pension funds and others.

Internships

Internships are for 10-12 weeks, usually over the summer and are available to candidates in their penultimate (next to last) year of study.

Investment Banking and Debt Capital Markets

Investment Banking and Debt Capital Markets is responsible for providing multi-product solutions for clients seeking to raise capital or issue debt, and generating new business with prospective and existing clients.

Investment Grade

Bonds that are of a high level of credit quality. A bond rated BBB or above by Standard & Poors and rated Baa by the Moody's credit rating agency would qualify as investment grade.

Legal

The principal purpose of Legal is to ensure that Barclays Capital’s business is conducted in accordance with applicable laws and regulations.

Leveraged Funds

Specialist funds that take positions in equities, FX and interest rates. Typically highly leveraged.

Market Risk

Market Risk is the risk of price changes in the market for traded instruments and evaluates the potential impact of the market moving against the bank (a tradable instrument is anything that can be bought or sold, ranging from stocks and bonds to complex options and derivatives).

Medium-Term Notes

A flexible facility to issue notes of varying maturity, varying currency and either fixed or floating - all within one set of legal documentation.

Mezzanine Finance

Finance that is usually provided by specialist financial institutions that is neither pure equity nor pure debt. It can take many different forms and can be secured or unsecured; it usually earns a higher rate of return than pure debt but less than equity. Conversely, it carries a higher risk then pure debt, but less than equity.

Nostro

A bank’s bank account with another financial institution. Used to settle all transactions in a particular currency. Works in a similar fashion to a personal bank account.

Operations

Operations coordinate and streamline all business processes that underpin the smooth running of the bank. It ensures that all trades are settled quickly and efficiently, provides effective cash management, full reconciliation of both trades and cash, and ensures the integrity of the balance sheet. It is also responsible for the global integrity of client data as well as full compliance monitoring of all transactions.

Options

The right but not the obligation to buy/sell equities, bonds, foreign exchange or interest rate contracts by a future date at a price agreed now. 'Traded options' means the options themselves can be bought and sold.

Portfolio Management