Deutsche Bank Shares Soar More than 11% on Bond-Buying Rumors
Deutsche Bank shares soared more than 11 percent on the Frankfurt stock exchange on Wednesday, driven by speculation it may be considering a bond buyback program to help ease concern about its funds.
Shares in Germany's biggest lender -- which had shed around 13 percent over the previous two sessions on Monday and Tuesday -- topped an intraday high of 14.75 euros in late morning trade on Wednesday, a jump of 11.5 percent on the day.
Media reports have suggested it is considering a bond buyback, but a bank spokesman declined to comment on the information.
According to the Financial Times and Bloomberg Business News, which both quoted unnamed sources, the repurchase programme would focus on so-called senior bonds or debt that is secured by collateral and is repaid first if a company goes out of business.
The FT said Deutsche Bank had about 50 billion euros ($56 billion) of such bonds in issue.
But no firm decision had been taken as yet, both Bloomberg and FT reported.
Deutsche Bank shares, along with those of other European lenders, have taken a severe bashing recently. And investors have seemed particularly concerned about the German giant's ability to repay its debt.
The concerns pushed Deutsche Bank's new chief executive John Cryan to issue a statement and a letter to employees in which he insisted that the group's finances were "rock-solid."
Source: Agence France Presse
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