Barclays on Wednesday sought to reduce the effects of volatile credit markets by selling $12.3bn (€8.4bn) in risky credit assets to a new fund called Protium Finance that will manage them and return their income to the bank in the form of interest on a $12.6bn loan.

The loan to Protium -- a new fund being managed by former Barclays executives -- will be used to buy the assets and give the manager, C12 Capital Management, money to set up its operations.