Deutsche Bank shares (DBKGn.DE) tumbled on Friday after the bank's credit default swaps that insure against default shot to a four-year high, highlighting concerns among investors about the overall stability of Europe's banks.
"Deutsche Bank has been in the spotlight for a while now, in a similar way to how Credit Suisse had been," Stuart Cole, head macro economist at Equiti Capital, said. "It has gone through various restructurings and changes of leadership in attempts to get it back on a solid footing but so far none of these efforts appear to have really worked."
Some of Deutsche Bank's bonds meanwhile sold off too. Its 7.5% Additional Tier-1 dollar bonds fell nearly 3 cents to 72.868 cents on the dollar, pushing the yield up to 24%. . That yield is more than double what it was just two weeks ago, based on Tradeweb data.
