Toronto, Feb 1, 2026, 15:20 (EST) — Market closed.
Shares of Royal Bank of Canada dipped 0.35% to close at C$226.72 on Friday on the Toronto Stock Exchange. On the New York Stock Exchange, its U.S. listing dropped roughly 1.5%, ending at US$166.23. With markets closed Sunday, the stock will pick up again at Monday’s open. (MarketScreener)
The lender has just wrapped up a new US$1 billion regulatory-capital sale in the U.S. market. A legal opinion submitted to U.S. regulators detailed the issuance of 6.5% limited recourse capital notes, Series 8, maturing in 2086. RBC’s investor-relations site shows these notes were issued on Jan. 30, with a maturity date of May 24, 2086. (Securities and Exchange Commission)
The timing is crucial as the broader market has turned volatile. Canada’s S&P/TSX Composite closed Friday down 3.3%, weighed down by steep losses in gold stocks following a drop in the metal. Meanwhile, the U.S. dollar firmed after Donald Trump nominated Kevin Warsh to chair the Federal Reserve. Angelo Kourkafas, senior global strategist at Edward Jones, described the decline as “possibly an overdue correction.” (Reuters)
In a Form 6-K dated Jan. 30, the bank disclosed that the exhibits were filed related to the notes and a preferred-share offering. The underwriters named include RBC Capital Markets, LLC, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and UBS Securities LLC. The filing was signed by Jason Drysdale, executive vice-president and treasurer. (Securities and Exchange Commission)
Limited recourse notes are secured by assets held in a trust, meaning that if specific events occur, investors’ claims are confined to those assets instead of a direct claim. The NVCC designation stems from Canadian regulations that can compel conversion into common shares if regulators determine the bank is no longer viable.
For equity investors, this isn’t about daily operations. But it does highlight how capital structure and funding costs can suddenly take center stage when markets turn volatile.
The group often moves in clusters. Canadian bank peers like Toronto-Dominion Bank and Bank of Montreal frequently respond to the same blend of rate expectations, currency shifts, and overall risk appetite.
The key macro event this week lands on Friday, with January employment reports from the United States and Canada set for release. These figures have the potential to sway bond yields and, in turn, impact bank stock prices. (Scotiabank)
A weak data point or a sudden swing in commodities, the dollar, or interest rates might keep investors cautious, pushing bank stocks to track the index more than their individual fundamentals.
RBC is set to release its first-quarter results and hold a conference call on Feb. 26 at 8:30 a.m. ET. (RBC)
