This Banking Stock Is a Great Hedge Against Rising Interest Rates
Western Alliance Bancorporation (NYSE: WAL) describes itself as "the bank for all seasons" for having the flexibility to rapidly adapt its business and capital allocation in response to changing market environments.
The bank demonstrated its ability to adapt and sustain good results in a horrible market during the pandemic. And even though Western Alliance's stock price dropped along with the rest of the market in 2020, the company's management adapted its business quickly. For example, by the end of 2020, Western Alliance's net income had grown rapidly, and the stock had recovered all of its losses from March.
Today, the economic situation has changed, and the bank needs to respond to a rising interest rate environment. Here's why Western Alliance makes an excellent investment in the current market.
Source Fool.com
