Posted on 02/14/2016 9:42:57 AM PST by Lorianne
German-based Deutsche Bank’s (DB) shares have been on a roller coaster ride since the new CEO (chief executive officer) John Cryan took over. Shares of the company have fallen nearly 30% in 2016 so far, and news that the bank was considering a share buyback has failed to soothe investors who are worried about its ability to make debt repayments.
On Monday, February 8, 2016, shares of Deutsche Bank fell to fresh lows as the bank’s efforts to reassure investors about its ability to pay coupons on its AT1 bonds failed. The bank has 350 million euros of AT1 coupon maturity on April 30, 2016. For 2017, Deutsche Bank said its estimated payment capacity is approximately 4.3 billion euros, excluding any impact from 2016 operating results.
Further, the cost of insuring its debt has been spiking, which is seen as a signal that investors are concerned that it might default on its debt repayments.
(Excerpt) Read more at marketrealist.com ...
No need to worry. It’s too big to fail.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.