Glossary

An applicant/hire who is studying for/has received a bachelor's degree (or equivalent) or a masters degree with limited (usually internship) work experience.

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.

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

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.

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

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.

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.

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

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

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

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.

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 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.

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.

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

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.

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 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.

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

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

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.

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.

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.

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.

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 Division 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.

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.

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

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).

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.

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.

The strategic portfolio of Barclays Capital is a global fixed income portfolio, and is a significant contributor to the revenues of the Global Markets division. The portfolio invests in government securities, bank paper and derivatives of the most developed fixed-income markets.

The Prime Brokerage service is aimed at leveraged and hedge funds providing fully integrated equity, futures, fixed income, foreign exchange execution and clearing products. It also includes custody of assets, consolidated position reporting, access to scarce equity and fixed income securities, competitive margin, collateral and financing terms.

An applicant/hire who is studying for a PhD or equivalent degree in a highly quantitative discipline (e.g. Maths, Life Sciences, Engineering, Financial Economics) without any significant work experience.

Sale and Repurchase Agreements. These are agreements to sell bonds with a simultaneous agreement to repurchase these bonds back at a later date, typically less than one year. A repo effectively enables the holder of a bond to borrow money while using the bond as collateral with the lender.

Research is responsible for analysing the economic, political and technical factors influencing the markets, supporting both the salespeople and traders, as well as their own direct client relationships.

Salespeople are responsible for building and maintaining client relationships, as well as providing clients with information about products and services, and marketing information to help manage risk. The firm's salesforce is fundamental to our client-driven business model. Sales delivers the services of the firm to the client and also delivers the client's business to the firm.

A key product area and an important financing technique used to convert cash generating assets into marketable securities for sale to investors. The objective of securitisation is to separate business risk from the risk of sold assets. This enables investors to assess the credit quality and the cash flow of the pool of assets rather than looking to the business risk.

Barclays Capital constantly reviews its strategic options, competitive environment and set of capabilities. Strategy & Planning supports the senior leadership of the firm in developing and implementing the firm's strategic plans.

Structuring is a division of Global Financing which consists of a group of specialist product teams sub-divided into four product areas: tax, conduits, structured bond issues and asset back securities. As a Business Area, Structuring involves developing new products to meet client requirements using high-level quantitative skills to create sophisticated solutions.

Exchange of interest obligations between two parties, either fixed to floating rate, or vice versa, or a given notional period for an agreed time period. Currency swaps exchange interest flows in two currencies, and also include an exchange of principals in the two currencies.

Technology developers build up the bank's technological capability by developing cutting-edge products. Technology infrastructure specialists support the bank's existing platforms, delivering technology support to users business-wide. The technology team also focuses on Business Areas, working closely with traders to make sure their needs are fulfilled.

Traders are responsible for buying and selling financial instruments to generate profit. At Barclays Capital traders deal in financial products related to interest rates, foreign exchange, equities and commodities foreign exchange, equities and commodities.