Deutsche Bank in early stages of considering bond buy back..buying back their own debt!

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http://www.bloomberg.com/news/articles/2016-02-09/deutsche-bank-erases-loss-in-u-s-trading-on-bond-buyback-report

Deutsche Bank AG is considering buying back some of its debt, according to a person familiar with the company’s deliberations.

No decision has been made and a buyback may be deemed unattractive, although the firm has sufficient cash to carry it out, according to the person, who asked not to be identified speaking about private discussions. The bank’s shares pared losses in U.S. trading on an earlier report by the Financial Times that the firm is considering buying back senior bonds and probably not contingent convertible bonds known as CoCos. Renee Calabro, a spokeswoman for the Frankfurt-based bank, declined to comment on the report.

The stock was down 1 percent to $15.38 at 4:15 p.m. in New York after declining as much as 4.9 percent. The cost of protecting the lender’s bonds from default fell, with credit-default swaps dropping 3.7 basis points to 233.1 basis points, according to prices compiled by Bloomberg.

Investors have grown concerned this year that co-Chief Executive Officer John Cryan will struggle to overhaul businesses, strengthen capital and make payments on the bank’s riskiest debt as volatile markets hurt revenue and probes threaten to create additional legal costs. With those worries driving down the value of its stock and bonds, the firm may look to book capital gains by buying back the debt at a discount.

“It seems like they’re not happy with the way their debt is trading and they’re
going to show the market,” said Bryan Dooley, senior portfolio manager at LOM Asset Management in Hamilton, Bermuda, which manages about $1 billion, including Deutsche Bank preferred securities. “Why not go into the market and retire that debt?”

Deutsche Bank has about 53.8 billion euros ($60.8 billion) of senior debt outstanding, according to data compiled by Bloomberg. The weighted average maturity of its 144 billion euros of debt is six years.

Cryan, 55, told employees in a memo on Tuesday that Germany’s largest bank is “rock solid.” The firm has ample “capacity and commitment to pay coupons to investors” who hold CoCos, also known as additional Tier 1 capital.

———–

DB is under enormous pressure..its almost looking like the european lehman brothers..

look at the chart..its gone through the support levels..next stop?

“It seems like they’re not happy with the way their debt is trading and they’re
going to show the market,”

they sell their debt and then dont like how the debt is being traded and want to buy it back..good luck trying to understand that if you arent an accountant..

401

~ by seeker401 on February 12, 2016.

17 Responses to “Deutsche Bank in early stages of considering bond buy back..buying back their own debt!”

  1. I am an accountant and don’t understand it

  2. Reblogged this on Scoop Feed.

  3. Reblogged this on UZA – people's courts, forums, & tribunals and commented:
    We are operating under revolving foreclosure bankruptcy; this is maritime salvage law at its best; Money is an IOU; a debt is a credit; a credit is a debt; the wealthiest are the biggest debtors; it’s upsidedown; in peace

  4. Keiser: Deutsche Bank ‘technically insolvent’, running a ‘ponzi scheme’

    https://www.rt.com/news/332446-keiser-deutsche-bank-technically-insolvent/

  5. Deutsche Bank Settles Silver Price-Fix Claims, Lawyers Say

    http://www.bloomberg.com/news/articles/2016-04-13/deutsche-bank-settles-silver-price-fixing-claims-lawyers-say

  6. Deutsche Bank Confirms Silver Market Manipulation In Legal Settlement, Agrees To Expose Other Banks

    http://www.zerohedge.com/news/2016-04-14/case-closed-deutsche-bank-confirms-silver-market-manipulation-legal-settlement-agree

  7. Exactly who’s manipulating who ?? … Martin

    Are the People being Manipulated by Those Claiming Manipulation?

    https://www.armstrongeconomics.com/armstrongeconomics101/basic-concepts/are-the-people-being-manipulated-by-those-claiming-manipulation/

  8. LEHMAN #2 is here ,,,very soonnnn

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