Inflation derivatives house of the year: Royal Bank of Scotland

Mark Greenwood

As 2012 drew to a close, UBS became the second bank to settle a Libor interest rate-rigging investigation, for a sum of roughly $1.5 billion. Royal Bank of Scotland (RBS) is expected to follow shortly, which will inevitably affect the way the bank’s rates business is perceived – including the inflation franchise.

That does not alter the fact that, over the past 12 months, the inflation team at RBS has managed to pull off a tough balancing act – cutting risk-weighted asset drivers for market risk