Deutsche Bank Has Plenty of Liquidity Amid Stress, Analysts Say
- Lender could handle more than two months of stress: Autonomous
- Bank had $249 billion in liquidity reserves at end of June
What Do Deutsche Bank Clients, Investors Fear?
This article is for subscribers only.
Deutsche Bank AG has plenty of readily available funds even if some clients pull deposits, according to analysts, responding to a drop in the bank’s shares after some hedge funds reduced their exposure.
Deutsche Bank has enough liquidity to handle more than two months of severe stress, including trading clients pulling back, Stuart Graham, an analyst at Autonomous Research LLP wrote in a note Thursday, citing the bank’s filings. Prime brokerage deposits of hedge funds probably only provide 3 percent of the bank’s funding, and the company has access to additional backstops from the European Central Bank, Goldman Sachs Group Inc. analysts led by Jernej Omahen said.