Royal Bank of Canada has lost at least five high-yield credit analysts and traders in recent weeks, with some joining rival firms after the bank suffered losses tied to the collapse of First Brands Group, according to people familiar with the matter. The departures signal growing discontent within RBC's fixed-income division following the unexpected losses.

The exodus comes as RBC reassesses its high-yield trading strategy after the First Brands Group bankruptcy exposed vulnerabilities in the bank's credit positions. While specific financial details of the losses remain undisclosed, the departures suggest the impact was significant enough to prompt key personnel to seek opportunities elsewhere. Industry sources indicate the losses may have been larger than initially anticipated.

The talent drain at RBC could weaken its competitive position in the high-yield market, where relationships and expertise are crucial. Competitors may look to capitalize on the instability by recruiting additional staff, potentially accelerating RBC's challenges in maintaining its market share in this segment.