Deutsche Bank Bloodbath Reignites Global Bank Crisis Fears

by | Mar 24, 2023 | Headline News | 0 comments

This article was originally published by Tyler Durden at ZeroHedge. 

Last night, amid the Fed’s H.4.1 report, we noted an unprecedented surge in foreign official Repo ($60 billion) under the Fed’s new FIMA repo facility, which means that the offshore scramble for dollars was alive and well, and someone really needed access to USD. The assumption was that it was Credit Suisse (or UBS) shoring up some shortfalls, but with the action of the last couple of days, others are worrying that there is more afoot in the EU banking system.

After a brief respite earlier in the week, European bank stocks are cratering once again, now at 3-month lows (catching down to Senior Financial CDS)…

Deutsche Bank stock has crashed to 5-month lows…

Deutsche Bank CDS is soaring (Commerzbank is also rising rapidly)…

Source: Bloomberg

 

With the most crucial aspect (short-dated protection mainly used as a counterparty risk by derivatives trading partners) is very aggressively bid…

Source: Bloomberg

Notably, Deutsche unexpectedly announced its decision to redeem a tier 2 subordinated bond on Friday in a reassuring effort.

“Deutsche’s decision to redeem (having received all required regulatory approvals) should be a reassuring signal to credit investors,” Autonomous analyst Stuart Graham wrote in a note on Friday.

But instead, other Deutsche Bank AT1 bonds have plunged in price (with yields soaring above 16%)…

Source: Bloomberg

Notably, ECB rate-hike odds have plunged this morning from 25bps in May fully priced-in to just 60% odds now…

Source: Bloomberg

 

There is no specific news on DB to catalyze these moves but if DB is next, then the world’s financial system has a serious problem that makes CS look like SVB.

Prepare For An Economic Emergency Or Recession

Inflation is Running at 40-Year Highs!

Negative interest rates are taxing savers, creating food shortages, and making life miserable in the United States!

There's little time left before the REAL DISASTER occurs!

Download the Ultimate Reset Guide Now!

    Related Articles

    Comments

    0 Comments

    Submit a Comment

    Commenting Policy:

    Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

    This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.