Deutsche Bank

In this round-up, the European Central Bank renews its RMB swap line, Swiss Re increases its RMB qualified foreign institutional investors (RQFII) quota, and CLS facilitates netting for RMB foreign exchange transactions. Plus, a recap of our coverage this week.

Intense fear about Deutsche Bank’s capital position has once again threatened to mess with the best laid plans of Europe's banks. But the once bulging subordinated bond pipeline may not have emptied out entirely, and that suggests investors are still willing to buy bank bonds.

Deutsche Bank isn’t even close to being the most-litigated-against bank in the post-crisis era — that honour goes to Bank of America, which has paid more than $150bn in fines, settlements and lawsuits since the crisis. But any potential settlement it strikes with Department of Justice over RMBS mis-selling will keep on hurting the bank's peers, for years afterwards.

We noted last week that Deutsche Bank could soon become the widest name in the Markit iTraxx Europe index if its credit deterioration continued. It came to pass perhaps sooner than many expected, with its senior five year spreads closing at 251bp on Monday, 6bp wider than Glencore.

France's Total became the second European issuer of a corporate hybrid in two days, following EnBW’s successful deal on Wednesday.

Stadshypotek attracted a wealth of demand on Monday for its first covered bond backed by Finnish mortgages, and priced the deal much tighter than initially indicated with few investors falling out.

NordLB decided to pull a seven year senior transaction from the market on Tuesday, as speculation about Deutsche Bank’s health hit financial credit spreads and dampened investor sentiment.

PKO Bank Hipoteczny has mandated leads to go on a roadshow with the first euro benchmark covered bond from Poland.

Deutsche Bank is not simply too big to fail, it is too big to function. It's time to shrink.

Société Générale returned to the green bond market this week, in the first sign that primary markets could quickly bounce back despite the noise around Deutsche Bank.

The Islamic Republic of Pakistan is returning to the international debt market for a dollar sukuk after a gap of two years.

Panama’s Global Bank has announced a tender offer for its structured covered bond.