RBC issues statement regarding the Canadian non-bank sponsored asset-backed commercial paper market

RBC welcomes the initiative announced this morning on a proposed solution to the liquidity problem faced by the Canadian non-bank administered asset-backed commercial paper market. RBC will support actions to achieve an orderly resolution over the work out period.

As we have previously stated, RBC does not have significant exposure to this market.

RBC continues to provide active secondary support for its own RBC-administered asset-backed commercial paper conduits programs, which have not experienced liquidity issues. None of RBC’s Canadian conduits holds any structured finance assets or issues extendible asset-backed commercial paper. All of RBC’s programs have fully committed liquidity facilities and do not require a market disruption to occur for the liquidity to be available. In addition, all of RBC’s programs benefit from a program-wide credit enhancement facility provided exclusively by RBC.