US Regional Bank Stress Spurs Big Preferred Investor to Sell (1)

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.

Cohen & Steers Inc. has sold regional banks’ so-called preferred shares in recent weeks, senior portfolio manager Elaine Zaharis-Nikas said in an interview with Bloomberg News. The collapse of Silicon Valley Bank in March and subsequent failures of other small lenders have exposed vulnerabilities that require a change in tack, she said.

“We have to take a step back and do a different type of analysis,” said Zaharis-Nikas, pointing ...