Deutsche Bonds 'Dropping Like A Stone' as 'Most Dangerous Bank in the World' Plummets
ZeroHedge.com
“They are dropping like a stone,” warns one European credit strategist as signals from the bottom of Deutsche Bank’s capital structure signal a “huge increase in the potential for a coupon skip.”
With DB stock tumbling towards record lows again…
Bloomberg reports, the bank’s 1.75 billion euros ($2 billion) of 6% additional Tier 1 bonds, the first notes to take losses in a crisis, are crashing… as the world’s most systemically dangerous bank faces existential problemsonce again.
Deutsche Bank AG’s riskiest bonds plummeted after the German lender received a $14 billion claim from the U.S. Justice Department to settle an investigation into the firm’s sale of residential mortgage-backed securities.“They are dropping like a stone,” said Tomas Kinmonth, a credit strategist at ABN Amro Bank NV in Amsterdam. “The fine, even if reduced, could surpass all provisions held by the bank.”
Interest payments on additional Tier 1 bonds can be switched off if a lender runs into trouble and Germany’s biggest bank has the least available distributable funds among banks in Europe,according to CreditSights Ltd. The bank said in March it had 1.1 billion euros available to pay AT1s for the year.
“Anything above $10 billion will make things very difficult for them,” he said. “This is unequivocally bad for their AT1s. It hugely increases the potential for a coupon skip.”
Then who’s next?
As we previously conclude, considering two of the three most “globally systemically important”, i.e., riskiest, banks just saw their stock price scrape all time lows earlier this week, we wonder just how nervous behind their calm facades are the executives at the ECB, the IMF, and the rest of the handful of people who realize just close to the edge of collapse this world’s most riskiest bank (whose market cap is less than the valuation of AirBnB) finds itself right now.
More great articles here: http://www.zerohedge.com
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).
All of these banks in the EU and amerika/western banks are ALL in trouble. Nothing from the 2007-2008 financial debacle was fixed. If anything, quite the opposite has been done to resolve the matters.