Investors are bingeing on preferred shares as declining interest rates have them looking to buy now before coupons fall further.
Preferred share sales in Canada in the past few days have hit $1.5-billion and counting, as banks and other issuers dive into the market.
Royal Bank of Canada on Friday announced a $250-million sale of preferreds that was increased to $500-million. Toronto-Dominion Bank followed, seeking $300-million and bumping that to $500-million thanks to a swollen order book. Brookfield Asset Management sought $250-million and got $300-million.