off-the-wire

Deutsche Bank shares whipsaw after CDS blow-out

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON/FRANKFURT, March 24 (Reuters) - Deutsche Bank shares dropped as much as 3.4% in Friday's premarket trade, after a sharp jump in the cost of insuring against the risk of default late the day before fuelled concerns about the overall stability of Europe's banks.


Deutsche shares, which have lost a fifth of their value so far this month already, were last indicated up 0.9% in premarket trade on the Lang & Schwartz platform.


They closed 3.2% lower on Thursday, while the bank's credit default swaps - a form of insurance for bondholders - shot up to 173 basis points from 142 bps the day before, according to data from S&P Market Intelligence on Thursday. This marks the largest one-day rise in Deutsche's CDS on record, according to Refinitiv data.
(Reporting by Amanda Cooper; Editing by Dhara Ranasinghe)

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