Toronto, Jan 31, 2026, 15:26 EST — Market closed.
- Royal Bank of Canada shares closed Friday at C$226.72 in Toronto, down 0.35%; the U.S.-listed stock fell 1.5%.
- RBC priced a US$1 billion Limited Recourse Capital Notes deal dated Jan. 30, a long-dated regulatory-capital instrument.
- Traders head into Monday watching rate expectations after Donald Trump named Kevin Warsh as his pick to run the Federal Reserve.
Royal Bank of Canada stock ended slightly lower on Friday, with the shares closing at C$226.72 on the Toronto Stock Exchange. In New York, RBC’s U.S.-listed shares finished down 1.5% at $166.23. (StockAnalysis)
With markets shut for the weekend, the immediate question is whether Friday’s shock in rates-and-commodities spills into bank shares again on Monday, or fades as fast as it hit.
For RBC, the timing also matters because it just tapped markets for fresh loss-absorbing capital, a funding move investors tend to watch closely when volatility jumps.
Canada’s benchmark TSX fell 3.3% on Friday, its biggest one-day drop since April, after a plunge in gold and other metals sparked a wider selloff. Angelo Kourkafas, senior global strategist at Edward Jones, called it “a big move” and said the stronger U.S. dollar was the day’s catalyst after Trump nominated Kevin Warsh, often viewed as hawkish, as the next Fed chair. (Reuters)
Other Canadian bank stocks in New York also retreated, with Toronto-Dominion down 1.5%, Bank of Montreal off 3.7% and Scotiabank down 2.2% on the day.
RBC’s latest company-specific catalyst was a US$1.0 billion issuance of Limited Recourse Capital Notes dated Jan. 30, with a maturity of May 24, 2086, according to the bank’s investor-relations disclosures. A related U.S. filing described the notes as 6.500% “Limited Recourse Capital Notes, Series 8” and outlined a structure that includes linked preferred shares that can convert into common stock in a “trigger event.” (RBC)
That alphabet soup matters because these instruments count toward regulatory buffers. In plain English, they are designed to absorb losses and protect depositors if a bank runs into trouble, but they can be sensitive to swings in interest rates and risk appetite.
Rates are the bigger backdrop. The Bank of Canada held its policy rate at 2.25% this week and flagged uncertainty around trade policy and the broader outlook; its next scheduled decision is March 18. (Bank of Canada)
The risk for RBC and its peers is that Friday’s move turns into something messier: wider credit spreads, sharper yield swings and a more cautious market for bank capital. That can raise funding costs, pressure valuations and bring loan-loss worries back into focus even without a new bank-specific headline.
Next up, investors get a hard catalyst on Feb. 26, when RBC is scheduled to report first-quarter results and hold its earnings call at 8:30 a.m. ET. (RBC)
