Regional Banks Face Investor Sell-Off Amidst Market Turmoil
Cohen & Steers, a major buyer of securities issued by US banks to bolster capital, is cutting exposure to regional issuers due to concerns about their ability to quickly recover from the current stress. The collapse of Silicon Valley Bank in March and subsequent failures of other small lenders have exposed vulnerabilities that require a change in tack, said senior portfolio manager Elaine Zaharis-Nikas. Cohen & Steers has reduced exposure to preferred shares issued by US regional lenders as a result.