Western Alliance notes lower; regional banks stay in focus; Lumen mixed post earnings

By Cristal Cody

Tupelo, Miss., May 3 – Western Alliance Bancorp became the latest bank to send shivers through the financial markets with the issuer’s paper down about 2¾ points to 5¼ points in heavy secondary action on Wednesday.

Western Alliance’s 3% notes due 2031 (Ba1) declined 2¾ points to 65 bid, a source said.

Secondary supply hit $18.6 million.

The bank’s stock slid more than 30% in after-hours trading.

PacWest Bancorp also sold off with shares down 57% in after-hours trading at $2.74 after closing the day 2% lower at $6.42, sources noted.

PacWest’s $500 million of $25-par 7¾% perpetual preferred stock (//B) priced on June 1, 2022 closed the day down 7.65% to $11.59 but plunged 54% in early after-hours volume to where the issue was last seen at $5.31.

The space has been under renewed pressure this week with the collapse Monday of First Republic Bank.

Higher-grade financial paper saw some gains Wednesday, including Wells Fargo & Co.’s 5.9% perpetual securities that were ¾ point better following the Federal Reserve’s rate hike, a source said.

Elsewhere, Lumen Technologies, Inc.’s 4% senior secured notes due 2027 (B3/BB-) fell ½ point to 68 bid on more than $16 million of paper changing hands, a source said.

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