Rule change spells end to Eu2.8bn DB Novartis bond

Deutsche Bank was forced to redeem a Eu2.8bn exchangeable into Swiss pharmaceuticals giant Novartis this week, following an unexpected change in accounting regulations.

The introduction of a new rule by the Financial Accounting Standards Board over the treatment of hedging practices rendered the Eu3.2bn exchangeable unattractive for Novartis.

Novartis structured the trade through Deutsche ...