The German bank is in the spotlight of investors this Friday due to the even profile of clients, shareholders with Credit Suisse and the long history of problems and restructuring of the entity.
After the collapse of several banks in the United States (Silicon Valley Bank and Signature Bank) and the credit suisse bailoutthe financial markets set their sights on the Deutsche Bankthe largest bank in Germany.
The shares of the region’s banks, which comprise the bank index Euro Stoxx 600, fell 4.6% by mid-morning on Friday. The German commerzbank fell 9%, the French Societe Generale lost 7% and the Finn Nordea 9.8%.
The German group that leads Christian Sewing it has come to collapse 15% on the stock market this Friday, below 8 euros, amid growing doubts about its debt portfolio and the shareholding profile of the group, with the Qatari sovereign wealth fund as the most relevant partner (4.7%), followed by the entity’s own treasury stock (3%). The capitalization of the Teutonic bank stands at 17,000 million euros, less than BBVA (38,000 million) or Caixa (28,000 million).
Investors were especially concerned about Deutsche Bankwhose shares tumbled on Friday a 10% This Friday morning the decision of Deutsche Bank to redeem early a subordinated bond, whose value had plummeted in recent weeks. The bank has just completed a successful turnaround that has boosted its profitability. All in all, the firm’s share price has fallen by 27% in 2023.
“It’s banking concerns and turmoil that are hitting fixed income now,” said Jussi Hiljanen, head of rate strategy at SEB bank.
“In general, the markets are quite concerned and focused on the possible next domino,” adding that there was a “flow to safety” pushing up government bond prices.
Source: Ambito
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