(Bloomberg) -- Investors continue to punish New York Community Bancorp for its latest transgressions, but for now at least, they don’t seem concerned that it heralds the onset of another regional-banking crisis.

Options and credit markets show few signs of angst beyond products tied to the Hicksville, New York-based bank. Demand for downside protection tied to banking-related exchange-traded funds has barely budged while risk premiums on bonds from major regional lenders edged only slightly higher. NYCB’s shares plunged 26% to the lowest level since 1997, while the SPDR S&P Regional Banking ETF (ticker KRE) slipped just 1.1%.

Not even a year removed from the Silicon Valley Bank blowup that looked to drag the sector lower, investors are exhibiting resolve, betting that the woes plaguing NYCB are unique to that lender and don’t portend a broader crisis. Among the reasons for their relative calm is NYCB’s unusual regulatory burden and its profile as a major lender to New York City landlords.

“A number of NYCB’s issues are idiosyncratic: an outsized rent-regulated apartment exposure, recently clearing the $100 billion asset mark that ushers tougher regulatory scrutiny, and now the material weakness in its internal controls,” said Bloomberg Intelligence analyst Herman Chan. “No other bank squarely fits into that same criteria.”

In the options market, traders snapped up downside protection tied to NYCB — positioning for shares to shed close to half of their already meager value. The one-month, 25-delta put skew — comparing the cost of bearish puts with a 25% chance of coming in-the-money to equivalent bullish calls — soared to roughly seven times its average over the past year. That relationship signals an outpouring of demand for hedges. 

In contrast, the same measure of skew in banking-related exchange-traded funds posted far less notable moves. 

“The demand for downside appears to be more company specific, rather than broad-sector based,” said Stephen Solaka, managing partner at Belmont Capital Group.

Credit traders seemed to follow a similar logic. NYCB’s floating-rate notes due 2028 fell by nearly 6 cents on the dollar to 77.5 cents on Friday, and then rose a touch to 78.15 cents, as of 4:35 p.m., according to pricing source Trace. The notes traded at 83.25 cents on Feb. 27.

The banking system remains sound and resilient, while the Treasury Department and regulators continue to monitor the situation, White House Press Secretary Karine Jean-Pierre said Friday. 

Read More: Guggenheim’s Millstein Says US Banks Are Sound Amid NYCB Tumult

Guggenheim Securities Co-Chair Jim Millstein also described the banking system as “pretty sound” on Friday. “There are always going to be a couple of banks that get out over their skis,” he said in a Bloomberg Television interview.

--With assistance from Michelle Jamrisko.

(Updates stock moves throughout and adds commentary starting in ninth paragraph.)

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