Deutsche Bank’s Funding Costs Show Its Struggle to End Vicious Circle
- Investors demand higher returns as bank grapples with revenue
- CFO Von Moltke has said reducing funding costs a key priority
This article is for subscribers only.
Deutsche Bank AG is paying some of the highest rates among large banks to raise debt this year, highlighting a key obstacle in the lender’s turnaround effort.
Germany’s biggest bank this week sold $1.25 billion of three-year dollar bonds that pay 255 basis points over benchmark interest rates, according to a person familiar with the matter who asked not to be named. That’s almost twice what other European lenders have paid in recent months. Only Denmark’s Danske Bank A/S, which is grappling with a money laundering scandal, and Italy’s UniCredit SpA have paid similar or greater amounts.