What’s Going on With Deutsche Bank???

Obviously DB is currently in a stronger position than CS has ever been in the past few years, but there seems to be panic and uncertainty across all European banks right now—with DB sticking out has the next bank up in the “who’s next” bullpen.

Their shares have been getting killed recently, CDS just shot up 25%… I can’t help but think wiping out all of the CS AT1 bonds definitely didn’t help to add any confidence (although the issuance DID allow for the wipe out to happen)

Is there anything substantial in these moves today? Or is the market overreacting to this quasi “crisis of confidence” within the banking sector.

Personally, I think these fears are overblown, curious to hear what you guys think.

15 Comments
 

small difference between DB and CS

DB has actually returned to being profitable and current focus on less IB more traditional consumer banking works out quite well so far markets just love to shit on some bank and who better to shit on than good old Deutsche

 

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