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Deutsche Bank Plunges To 16-Month Lows, Bank Credit Risk Spikes
03-21-2018, 09:25 AM,
#1
Deutsche Bank Plunges To 16-Month Lows, Bank Credit Risk Spikes
Deutsche Bank Plunges To 16-Month Lows, Bank Credit Risk Spikes

<p>Deutsche Bank shares are down 5%, at their lowest since Nov 2016 (near post-crisis lows), after <strong>warning that euro strength and higher funding costs will weigh on revenue in the securities unit this quarter </strong>(just a week after the lender voiced optimism about the outlook for the year).</p>

<p>Bloomberg reports that the <strong>company’s corporate and investment bank unit faces a 300 million-euro ($368 million) headwind</strong> from the currency effect and 150 million euros from higher funding costs, Chief Financial Officer James von Moltkesaid at an investor conference in London on Wednesday.</p>

<p>The reaction was a swift 5% plunge in the stock...</p>

<p><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/2018-03-21_5-59-20.jpg?itok=eS1cRX4r" data-link-option="0" href="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-21_5-59-20.jpg?itok=eS1cRX4r"><img data-entity-type="file" data-entity-uuid="ef5cc4a1-f107-4aa6-9409-73360088585d" data-responsive-image-style="inline_images" height="265" width="500" srcset="https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-03-21_5-59-20.jpg?itok=eS1cRX4r 1x" src="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-21_5-59-20.jpg" alt="" typeof="foaf:Image" /></a></p>

<p>Heading back towards 2016 post-crisis lows...</p>

<p><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/2018-03-21_5-51-28.jpg?itok=RWdVLfbz" data-link-option="0" href="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-21_5-51-28.jpg?itok=RWdVLfbz"><img data-entity-type="file" data-entity-uuid="a86bd214-f3a8-48f3-b481-24821eb54c7a" data-responsive-image-style="inline_images" height="261" width="500" srcset="https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-03-21_5-51-28.jpg?itok=RWdVLfbz 1x" src="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-21_5-51-28.jpg" alt="" typeof="foaf:Image" /></a></p>

<p>Marcus Schenck, co-head of the corporate and investment bank, said at a separate event in London Wednesday that the lender still has some work to do convincing its shareholders it’s turnaround is on track.</p>

<blockquote>
<p><em><strong>“John has always made it very clear. Look, this is not a one-quarter journey. This is a several-year journey,” Schenck said. “We think we’re on the right path with that journey. But we definitely are a show-me case.”</strong></em></p>
</blockquote>

<p>We suggest "some work" is perhaps an understatement.</p>

<p>However, it's not just Deutsche that has been showing signs of strain recently in the credit markets... Many of the major prime brokers are seeing CDS breaking out...</p>

<p><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/2018-03-20_13-47-48.jpg?itok=4N0eruYk" data-link-option="0" href="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-20_13-47-48.jpg?itok=4N0eruYk"><img data-entity-type="file" data-entity-uuid="7c79560a-afc1-4c3c-b77d-7a657159cb9c" data-responsive-image-style="inline_images" height="261" width="500" srcset="https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-03-20_13-47-48.jpg?itok=4N0eruYk 1x" src="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-20_13-47-48.jpg" alt="" typeof="foaf:Image" /></a></p>

<p> </p>

<p>And more ominously, US financial credit risk is flashing red while bank stocks shrug it off (for now)...</p>

<p><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/2018-03-20_13-41-30.jpg?itok=YBRdL_fa" data-link-option="0" href="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-20_13-41-30.jpg?itok=YBRdL_fa"><img data-entity-type="file" data-entity-uuid="11cb52c8-7947-4857-9ad1-efaa2b4b398f" data-responsive-image-style="inline_images" height="260" width="500" srcset="https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-03-20_13-41-30.jpg?itok=YBRdL_fa 1x" src="https://www.zerohedge.com/sites/default/files/inline-images/2018-03-20_13-41-30.jpg" alt="" typeof="foaf:Image" /></a></p>

<p>This will not end well.</p><img src="http://feeds.feedburner.com/~r/zerohedge/feed/~4/LSDZ6ivv-j0" height="1" width="1" alt=""/>


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