DKB becomes first FIG issuer to cross negative yield line

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By Frank Jackman
18 Feb 2021

The financial institutions bond market had its Roger Bannister moment this week, as Deutsche Kreditbank broke the zero yield barrier for the first time. Now that a German borrower has lifted the negative yield taboo, bankers expect even deeper yielding deals could follow.

On May 6, 1954, Roger Bannister became the first person to run the four minute mile, a feat that was thought beyond human achievement. On Monday, DKB broke a less exhausting barrier by selling the first sub-zero yielding senior bank deal, by offering a return of minus 2.1bp.

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