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Daily Update••By Frankie

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.

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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

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    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

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    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.

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