Deutsche shares soar
February 10, 2016
Shares in Deutsche Bank, Germany's largest lender, were up 15 percent on Wednesday afternoon after a news report suggested it may start buying back prioritized debt from some of its bond holders.
Germany's blue-chip Dax stock index was also back above 9,000 points, lifted by a rise in Deutsche's and other banks' shares that had taken a pounding in the last two days.
According to a report in the "Financial Times," Deutsche could buy back so-called "senior debt," which differs from "subordinated debt" in that it is repaid first in the event of a bankruptcy or liquidation.
Investors have been skittish over Deutsche's finances, questioning whether it had enough capital to cover its debts.
Their unease followed an announcement late last month that the bank had lost 6.8 billion euros ($7.6 billion) in 2015, a record loss.
The poor share performance was met with an assurance by the bank's co-CEO, John Cryan, who sought to allay fears that his company's finances were anything less than "rock-solid."
cjc/hg (AP, dpa)