RBC Expands Credit Derivatives Trading as AI Debt Fuels Hedging

RBC Expands Credit Derivatives Trading as AI Debt Fuels Hedging

Royal Bank of Canada is expanding its credit derivatives trading business in the US and Europe, betting that multibillion-dollar fundraising for artificial intelligence will fuel demand for hedging products.

RBC expands credit derivatives business

Royal Bank of Canada (RBC) is expanding its credit derivatives trading business across the US and Europe as growing debt issuance linked to artificial intelligence investment fuels demand from hedge funds and other institutional investors for credit hedging strategies, according to a report by Bloomberg. The Canadian lender has broadened its credit default swap (CDS) offering by launching market-making in US dollar-denominated single-name CDS co…