Core Insights - Concerns over US regional banks' preferred shares have intensified following issues at Zions Bancorp and Western Alliance Bancorp, reminiscent of the selloff after the collapse of Silicon Valley Bank [1][4] Group 1: Market Reaction - Zions Bancorp's preferred shares fell 6.36% to $20.38, marking the largest drop since May 2023 and reaching an 18-month low, while Western Alliance's preferred shares dropped 2.87% to $20.83, the most significant decline since April 2024 [2][4] - Bid prices indicate that the preferred securities are expected to decline further, reflecting investor sentiment [2] Group 2: Broader Context - The recent disclosures from Zions and Western Alliance come amid existing investor anxiety due to the collapse of auto lender Tricolor Holdings and the bankruptcy of auto-parts supplier First Brands Group [3] - JPMorgan Chase's CEO Jamie Dimon has raised concerns about potential issues in credit quality, contributing to a cautious trading environment [3][4] Group 3: Comparison with Larger Banks - Preferred stocks from larger banks, referred to as the Big 6, remained relatively stable, while smaller banks' preferred shares experienced a more significant decline, with those in the retail market losing approximately 0.7% on average [5] Group 4: Historical Context - The 2023 banking crisis was triggered by rising interest rates, which adversely affected the bond portfolios of regional banks, leading to significant asset sales and the eventual collapse of SVB [6]