Deutsche Bank Risk Measures Soar on Financial Health Concern
Deutsche Bank Adds Fear of Contagion to Markets
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The cost of insuring Deutsche Bank AG’s subordinated debt rose to a record amid growing concerns about the lender’s financial health.
Credit-default swaps on the German lender’s junior bonds jumped as much as 37 basis points to 536 basis points, the highest level in CMA prices going back to 2007. The lender’s 1.75 billion euros ($2 billion) of 6 percent additional Tier 1 bonds, the first to take losses in a crisis, fell about 2 cents on the euro to a more than seven-month low of 71 cents, according to data compiled by Bloomberg.