Deutsche Bank shares fell in the latest sign of bank concerns

Last updated: March 24, 2023 at 5:39 a.m. ET

First posted: March 24, 2023 at 5:10 a.m. ET

Deutsche Bank shares fell on Friday, putting the health of another important global bank in the spotlight as the weekend approaches.

German lender XE:DBK fell 8% in Frankfurt trade, and Euro Stoxx Bank XX:SX7E fell 4%.

Deutsche Bank’s 5-year credit default swaps widened Thursday, as Reuters reported…

Deutsche Bank shares fell on Friday, putting the health of another important global bank in the spotlight as the weekend approaches.

German lender shares

DBK

The Frankfurt index fell 8% and the Euro Stoxx Bank index

SX7E

decreased 4%.

Deutsche Bank’s 5-year credit default swaps widened Thursday, Reuters reported that it was the largest one-day rise in its history.

It should be noted that Deutsche Bank’s 5-year CDS, which was 175 on Thursday, is nowhere near the Credit Suisse peak, which was 1,194, according to S&P Global data. The higher the value of the credit default swaps, the more likely the market will see the issuer default.

Deutsche Bank’s AT1 bond plunged after Switzerland wiped out Credit Suisse

csgn

Securities in the transaction to be acquired by UBS

UBSG

.

Invesco AT1 Capital Bond UCITS ETF

in 1

And
That invest in these convertible bonds is down 18% this month as investors lose faith in the securities. European regulators and other banking regulators around the world insisted they would not follow Switzerland’s precedent, first letting banks’ shares plummet to zero before eliminating convertible securities in case of failure.

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UPS

UPS

He is also feeling pressure on a deal that banks say may not be completed this year. UBS shares fell 5%.

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