Deutsche Bank Shares Slide , as Cost of Default Insurance Rises.
Markets Insider reports that Deutsche Bank shares dropped 14% on March 24.
Its U.S.-listed shares dropped 11%
in premarket trading.
The losses occurred after insurance against default increased on March 23.
According to Refinitiv, the price of credit default swaps tied to the bank's bonds shot up from
142 basis points to 173 basis points in just one day.
That is the greatest one-day increase on record.
Banking system fears continue to mount in both the
U.S. and Europe following the closures of SVB and
Signature Bank as well as Credit Suisse's bailout by UBS.
Banking system fears continue to mount in both the
U.S. and Europe following the closures of SVB and
Signature Bank as well as Credit Suisse's bailout by UBS.
Banking system fears continue to mount in both the
U.S. and Europe following the closures of SVB and
Signature Bank as well as Credit Suisse's bailout by UBS.
Other European banks to endure
stock losses on March 24 include UBS and France's Société Générale, each dipping 7%.
Other European banks to endure
stock losses on March 24 include UBS and France's Société Générale, each dipping 7%.
and Germany's Commerzbank sliding 8%.
After the events of the last
few weeks investors are clearly jittery, particularly when it
comes to the banking sector, Michael Field, Morningstar equity analyst, to Markets Insider.
Deutsche has been through a
long restructuring period, selling
off toxic assets along the way, but there is still some investor skepticism around the quality of the bank, Michael Field, Morningstar equity analyst, to Markets Insider.
When banking shares are
being beaten up, as they
are today, Deutsche will likely
take it worse than peers, Michael Field, Morningstar equity analyst, to Markets Insider