NatWest to exit US and European government bond primary dealer roles

NatWest's withdrawal from primary dealer roles in US and European government bonds points to a broader retrenchment in sovereign market-making, a capital-intensive business where balance-sheet costs and regulatory burdens weigh on mid-sized banks. The move matters less for NatWest's own footprint than for what it signals about the willingness of non-bulge-bracket players to underwrite sovereign issuance. Whether other banks follow, and how the remaining dealers absorb the capacity, is the open question for sovereign funding desks.