RBC's Exposure to Stable Value Products

Dow Jones Newswires, 23 January 2009There may be more scuds hidden deep in Royal Bank of Canada's books - this time in the form of stable value products, a type of insurance on fixed-income portfolios. State Street took $450M in 4Q charges on these products, and BMO Capital Markets notes RY has C$24.9B of exposure. While losses would be substantially lower, BMO says the "odds are rising" that RY