Deals
Deutsche Bank to Buy Back $5.4 Billion Bonds in Euros, Dollars
- Credit-default swaps on junior debt fell from records
- Measures of financial bond risk in Europe also declined
Deutsche Bank Plans to Buy Back Bonds
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Deutsche Bank AG, seeking to reverse an investor stampede away from its stock and debt, plans to buy back about $5.4 billion of bonds, including some it issued barely a month ago.
The buyback announcement, which helped send the shares of Germany’s biggest lender up 12 percent Friday, came at the end of a disastrous week for banks. The Stoxx Europe 600 Banks Index is down 25 percent this year, and measures of risk on banks and insurers in Europe hit the highest since at least 2013. Investors are concerned banks’ bottom lines will suffer amid falling oil prices, China’s economic slowdown, negative interest rates and a pullback by some sovereign-wealth funds.