Deutsche Bank shares whipsaw after CDS blow-out
2023.03.24 04:09
© Reuters. A worker walks past Deutsche Bank offices in London, Britain, March 16, 2023. REUTERS/Toby Melville
LONDON/FRANKFURT (Reuters) – Deutsche Bank (ETR:) shares dropped as much as 3.4% in Friday’s premarket trade, after a sharp jump in the cost of insuring against the risk of default late the day before fuelled concerns about the overall stability of Europe’s banks.
Deutsche shares, which have lost a fifth of their value so far this month already, were last indicated up 0.9% in premarket trade on the Lang & Schwartz platform.
They closed 3.2% lower on Thursday, while the bank’s credit default swaps – a form of insurance for bondholders – shot up to 173 basis points from 142 bps the day before, according to data from S&P Market Intelligence on Thursday.
This marks the largest one-day rise in Deutsche’s CDS on record, according to Refinitiv data.
