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Deutsche Bank’s Riskiest Bonds Fall to Lowest Since February

  • Notes decline 11 cents on the euro in three trading days
  • DOJ is seeking an initial $14 billion to settle investigation
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Deutsche Bank Said to Offload Risk by Securitizing Loans

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Deutsche Bank AG’s riskiest bonds dropped to the lowest since a marketwide rout in February as a potential $14 billion bill to settle a U.S. probe into mortgage-backed securities reignited capital concerns.

The lender’s 1.75 billion euros ($2 billion) of 6 percent additional Tier 1 bonds, the first notes to take losses in a crisis, fell four cents on the euro to 72 cents, according to data compiled by Bloomberg. That extended the decline since the U.S. Department of Justice’s initial settlement figure was announced last week to 11 cents.