Deutsche Bank Shares Decline Following Spike in Credit Default Swaps
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Deutsche Bank ($DB@US) shares fell by more than 13 percent in premarket trading on Friday following a spike in credit default swaps on Thursday night. Credit default swaps, a form of insurance for a company’s bondholders against its default, surged to 173 basis points on Thursday night from 142 basis points the previous day. Deutsche Bank’s additional tier one (AT1) bonds plunged after the write-down of Credit Suisse’s AT1s as part of its rescue deal. Deutsche Bank has reported 10 straight quarters of profit, following a multibillion-euro restructure that aimed to reduce costs and improve profitability. The lender recorded an annual net income of 5 billion euros ($5.4 billion) in 2022, up 159 percent from the previous year.