Royal Bank of CanadaNATHAN DENETTE
The investment-dealer arm of Royal Bank of Canada is hustling to increase its franchise in euro-denominated bonds by becoming a primary dealer for more key governments in the region.
RBC Dominion Securities has been a primary dealer in the U.K. for a decade, and in the past two days has been added as a primary dealer in France and Germany. RBC was also not long ago made a primary dealer in the U.S.
Being a primary dealer means getting into a select group that deals directly with a country's treasury, bidding in bond auctions. That gives RBC a leg up on getting product for investors -- and in prestige. It also gives executives at the banks that qualify more access to the decision makers in the governments.
"The euro-denominated rates capability has been one of our more underdeveloped areas," Harry Samuel, RBC's London-based co-head of fixed income and currencies, said in an interview. The bank has long had good links to investors but "we haven't had historically a strong euro product. This is really an opportunity to increase that."
RBC is also looking at more expansion beyond the recently named markets. "There are others we are looking at very closely," Mr. Samuel said, declining to elaborate.
The bank dominates many aspects of the bond business in Canada, but globally it still ranks among the middleweights. In Thomson Reuters' year-to-date rankings of total global debt underwriting, RBC places No. 13. So far this year, RBC has led debt financings worth almost $87-billion (U.S.). It's a big jump to get into the top 10, as tenth-ranked Royal Bank of Scotland has led offerings worth more than twice as much.