Canadian Preferred Shares Market Update - February 19, 2026

Market Overview

The Canadian preferred share market showed continued strength today with bank issues leading gains on higher-than-average volume.

#

Key Highlights

Bank Preferreds Rally
- Royal Bank preferreds saw increased buying interest with RY.PR.H trading at 6.10% yield
- National Bank NA.PR.K remains the highest yielding Big 6 issue at 6.55%
- BMO reset preferreds holding steady above 6% yields

Top Volume Issues Today
1. ENB.PR.B - Enbridge with strong institutional buying
2. NA.PR.K - National Bank Series K leading bank volumes
3. FFH.PR.G - Fairfax continuing to attract yield-seekers at 8.00%

Credit Rating Watch
- All Big 6 bank preferreds maintain P-1 DBRS ratings
- Fairfax (P-2) continues to offer the highest yield in our coverage

#

Market Outlook

With the Bank of Canada signaling potential rate stability, reset preferreds with spreads above +3.00% offer attractive risk-adjusted returns. The current environment favors:
- Bank reset preferreds with 2026-2028 reset dates
- Utility preferreds for lower volatility exposure
- Insurance preferreds for yield enhancement

#

Recommended Action

Consider accumulating quality reset preferreds while yields remain elevated. Focus on P-1 rated issuers with reset spreads of +3.00% or wider.

---

*Data as of market close February 19, 2026. Not investment advice.*