Last updated: March 24, 2023 at 5:39 am ET
Originally published: March 24, 2023 at 5:10 am ET
Deutsche Bank shares fell on Friday, putting the health of another globally systemically important bank in the spotlight over the weekend.
Shares of the German lender XE:DBK fell 8% in Frankfurt trading, while the Euro STOXX bank index XX:SX7E fell 4%.
Deutsche Bank’s 5-year loan-to-default swaps widened on Thursday, Reuters reported…
Deutsche Bank shares fell on Friday, putting the health of another globally systemically important bank in the spotlight over the weekend.
Shares of the German lender
D.P.K
It fell 8% in Frankfurt trade, and the Euro Stoxx banking index no
SX7E
fell by 4%.
Deutsche Bank’s 5-year debt-to-default swaps widened Thursday, Reuters reported that it was the biggest one-day rise in its history.
It’s important to note that Deutsche Bank’s 5-year loan-to-default swap, which stood at 175 on Thursday, didn’t come close to Credit Suisse’s peak, which stood at 1,194, according to S&P Global data. The higher the value of the CDS, the more likely the market will see the issuer default.
Deutsche Bank’s AT1 bonds fell after Switzerland destroyed Credit Suisse.
CSGN
The bonds in the contract are to be taken over by UBS
UPSG
.
Invesco AT1 Capital Bond UCITS ETF
AT1
,
Investing in these convertible bonds fell 18% this month as investors lost confidence in the bonds. European and other banking regulators around the world have insisted they will not follow Switzerland’s example and let bank equity fall to zero before scrapping convertible bonds in the event of a failure.
UPS
UPS
The pressure on a deal that banks say may not be completed this year. UBS shares fell 5%.
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