New Notes Take On Preferred Shares?

How a 60-year fixed income solution for institutional investors stacks up: DBRS's Robert Colangelo explains limited recourse capital notes (LRCNs)

Ruth Saldanha 27 July, 2020 | 1:08AM

 

 

Ruth Saldanha: Recently RBC issued $1 billion of new limited recourse capital notes called LRCNs. This is a new type of fixed income product that may compete with the preferred share market. There is a sense that several banks could eventually redeem their preferred shares and instead issue LRCNs. What are these products and what does it mean for the preferred share market? Robert Colangelo, Senior Vice President of Credit Ratings at DBRS Morningstar, is here today to discuss this.

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Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca

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