Business Report (Bloomberg)- Barclays might have “significant” risks to earnings growth resulting from loans to hedge funds and private equity firms, stockbroker Panmure Gordon said yesterday.
In addition to exposure to asset-backed commercial paper, which may contain high-risk assets including subprime mortgages, the bank’s securities unit might be hurt by loans to hedge funds and private equity firms, said Sandy Chen of Panmure.
“What was previously a strong source of growth could turn into an area of weakness.”
