Barclays Capital's CEO, Bob Diamond, talks to Antony Currie about his ambitions for the firm, explains why it is not delving into prop trading and why it won't be hurt by a bursting of the bond market bubble. And he reveals that one of his favourite businesses right now is equities.

The world’s most improved bank

For much of the 1980s and 1990s Barclays Bank was a great franchise in slow and gentle decline. It never suffered the massive setbacks and losses that beset its UK rivals, Midland and NatWest, both of which eventually succumbed to takeovers, but neither did it seem to be capable of making any great progress. It mishandled its investment banking build-up and subsequent disposal, it allowed its international network to wither and lost market share in key segments at home by standing aloof from domestic consolidation.

When its audacious bid to hire 40 debt markets bankers from CSFB failed, Barclays Capital quickly turned its attention to Deutsche Bank. In an effort to build up its US and global debt businesses, it has been quietly hiring for months. Now the big name new recruits from Deutsche must ensure this investment bears fruit.

Not everything that has happened to Barclays in the past few years has been positive. But behind the scenes, the UK financial services group is gaining a clear reputation for the growing sophistication of its capital and balance-sheet management. Two recent deals, both linked to balance-sheet management, have greatly enhanced the bank's reputation, both as a borrower and as an innovative deal maker.

Issuer: Barclays BankAmount: e850 millionType of issue: tier-one Reserve Capital InstrumentsLaunched: April 12Book runner: Barclays Capital