The capital consumed by long-dated derivatives trades under incoming Basel III rules means dealers will have to adapt, says Jerry del Missier, co-chief executive of Barclays Capital. But he insists the bank remains committed to one of the most apparently vulnerable areas – inflation derivatives.
"One certainty about inflation is that the business exists because it makes sense for clients. So we have to focus on how to deliver those benefits while still being sustainable. But we know for certain