This just came out:
Deutsche Bank announces that it will buy back €3B of its Euro denominated debt, and $2B of its USD denominated debt
The bank said in a statement on Friday that it’s “strong liquidity position” allows it to repurchase these senior securities without any change to its 2016 funding plan. The euro tender offer is targeting 3 billion euros, while the dollar tender targets $2 billion.
The stock is on fire in Germany, up greater than 10%. Commerzbank is higher by 15%, Unicredit +8% and here in the states the XLF is higher by 2%, with gains in C, JPM and BAC.
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The DB high-yield 7.60% and 8.05% preferreds had been selling at a deep discount, as low as 20-21 with a 25 par. I built a small position in DKT with a 22 basis. Guess I’ll be a seller.
I like that trade.
I did the same trade a few years back, running from 23 to 29. The nice thing about it is that even if the bounce takes a while, the dividend is good. I really don’t see DB failing unless the whole world collapses, extra Faber. This one kept going through the worst of the subprime, so…
wow that’s like 0.4% of their total debt. impressive.