12:57 PM EDT, 03/26/2024 (MT Newswires) -- Royal Bank of Canada ( RY ) unit RBC Capital Markets' Chief Executive Derek Neldner reassured private credit market's prospects, Bloomberg News reported Tuesday, citing Neldner at a conference.

Private credit is both a friend and foe to the mainstream banking industry. The challenge, especially over the last year, has been "private credit or direct lending displacing banks in either the underwriting leveraged finance market or in some of the lending markets," Neldner said.

Neldner is also board chair and CEO of RBC's US business.

Nonbank lenders remain big clients for RBC as they are active in lending and financing as well as risk management hedging strategies, which is a key factor in Royal Bank of Canada's ( RY ) sales and trading desk, Bloomberg cited Neldner.

The decrease in fees from direct lenders entering the leveraged finance market has been "more than offset by the overall growth of the asset and the client base and other places we support them across our business," he said, according to the report.

RBC didn't immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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