WAL - Western Alliance Bancorp: Floors To Soften Blow From Rate Shock
The slashing of Fed funds rate to near zero levels is expected to drag Western Alliance Bancorporation's (WAL) earnings this year. However, some relief is expected from the floors set up on a majority of WAL's variable rate loans. In addition, loans are expected to continue to grow this year, which will provide some breathing space. Apart from interest rates, earnings are also likely to be hit by a surge in provisions charge on the back of the economic slowdown that has been triggered by the COVID-19 pandemic. Overall, I'm expecting WAL's earnings