DB AT1s pasted as $14bn lawsuit puts coupons in trouble
Deutsche Bank is at real risk of failing to pay coupons on its additional tier one instruments, as a potential $14bn US RMBS settlement threatens to erase the bank's available distributable items (ADIs). Outstanding DB AT1 securities reacted accordingly last Friday, shooting nearly 200bp wider.
The US Department of Justice has asked Deutsche Bankto pay $14bn to settle a lawsuit relating to the mis-selling of US mortgage-backed securities before the financial crisis.Though Deutsche Bank said in a statement that it had “no intent to settle these potential civil claims ...
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com