PacWest Bancorp: Are The 9.6% Yielding Preferreds Still A Buy?

Pacifica Yield
12.61K Followers

Summary

  • PacWest's preferreds currently offer a 9.6% yield on cost.
  • They're also still trading at a discount, this sits at around 20% or 80 cents on the dollar.
  • The merger with Banc of California has materially derisked their investment profile.
PacWest Bank Shares Tumble, The Latest Bank To Become Ensnared In Banking Sector"s Crisis

David McNew/Getty Images News

PacWest Bancorp's (PACW) beleaguered Series A 7.75% Series A fixed-rate reset perpetual preferred stock (PACWP) seems to have closed out its turbulent chapter with its $1.9375 annual coupon now currently forming a 9.6% yield on cost on the

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of PACWP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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