Barclays has announced a buyback of up to $17.6bn of securities, after it accidentally sold more structured and exchange-traded notes than it had registered with the SEC. Bloomberg notes that this blunder requires the firm to not only repurchase more than 3,000 of the affected securities at their original price, but also to compensate past holders of the notes who have since sold the securities. The rescission offer will commence from August 1 and will expire on September 12. According to Reuters, Barclays is additionally expected to set aside £1bn ($1.2bn) to cover litigation costs related to the mistake. The British lender has said that it has set aside £540mn ($651mn) for the error in the first quarter results. The bank is due to publish its Q2 earnings on Thursday, where some analysts expect to see further costs from the buyback process.
Barclay’s 4.375% Perps callable in 2028 are trading higher at 78.6, up by 0.83 points to yield 7.25%.
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