Deals
Deutsche Bank Must Embrace Complex Trades for ROE, Cryan Says
- Trading government bonds `not very attractive,' co-CEO says
- Cryan sees opportunity in high-yield, leveraged-finance units
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Deutsche Bank AG’s path to higher returns in its trading business probably won’t be through dealing German bunds.
New rules on leverage mean Germany’s largest bank must embrace complex products and derivatives in order to earn sufficient returns on equity, co-Chief Executive Officer John Cryan said Tuesday at an investor conference in New York. While spreads for such securities have “repriced nicely” as fewer competitors are active, they require improvements to back-office functions and controls, he said.