BarCap Pays $1.5 Billion Fund Bailout Bill: Report

Barclays Capital bailed out a highly-leveraged investment fund, hit by recent tightness in the credit market, with a $1.5-billion (738-million-pound) lifeline, London newspaper the Times reported Wednesday.

The structured investment vehicle (SIV), called Golden Key, has $5 billion of assets under management and was designed by Barclays Capital but managed by Avendis, Geneva-based asset management group, the Times said.

Golden Key said in a statement it had been working with a "leading investment bank" to hammer out a restructuring deal, but didn't confirm it was the investment arm of U.K. bank Barclays. Sources told the Times that BarCap would underwrite the SIV's restructuring.