Deutsche Bank Credit-Swap Trading Surges to Six-Month High
- Contracts covering gross $843 million changed hands last week
- Surge followed U.S. levying potential $14 billion fine on bank
Spence: Deutsche Bank May Test German Bailout Stance
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Trading of protection on Deutsche Bank AG debt surged to a six-month high after a potential $14 billion U.S. fine stoked concerns about the financial strength of Germany’s biggest lender.
Credit-default swaps covering a gross $843 million of Deutsche Bank debt changed hands in the week ended Sept. 23, a surge of more than 60 percent from a week earlier and the fourth straight increase, according to Depository Trust & Clearing Corp. The cost of insuring the Frankfurt-based bank’s subordinated bonds jumped to a record this week, while the senior contracts rose to near the highest this year, based on data compiled by CMA