On Friday, the Royal Bank of Canada came to market with its second NVCC-compliant, rate/reset preferred share. The dividend rate will be 3.90% and the reset spread will be +226 basis points. Demand was very strong and the issue was upsized from $250 million to $500 million.
While the issue was well received, we did not participate in the offering as this new issue is yielding only 3.9%. Currently, the fund holds a Royal Bank perpetual preferred share with a dividend and current yield of 4.9%.