The $5.4mn trade that triggered Deutsche Bank's global rout.
TL;DR
The recent selloff in Deutsche Bank's shares and bonds has raised concerns among regulators about the role of credit-default swaps in causing market stress. While some argue that the surge in the cost of insuring Deutsche Bank's debt against default through these derivatives reflected investor unease, others believe it contributed to the loss of confidence in the bank. The episode has drawn parallels to a similar situation with Credit Suisse last fall.
Topics:businessfinance#credit-default-swaps#deutsche-bank#finance#investor-confidence#market-stress#regulators
- Deutsche Bank Selloff Focuses Attention on Credit-Default Swap Market The Wall Street Journal
- One credit-default swap trade may have sparked Deutsche Bank turmoil: report MarketWatch
- Its looking like one trade, a $5.4mn one, triggered 'Deutsche Bank' global rout on Friday ForexLive
- Market Jitters Ease, Sending VIX Down From Recent Highs The Wall Street Journal
- European stock futures edge higher; UBS turns to former boss By Investing.com Investing.com
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