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deutsche bank retains at1 bond defying market expectations and trends
Deutsche Bank has opted to retain a $1.25 billion Additional Tier 1 (AT1) bond with a 4.789% interest rate, contrary to market expectations for early redemptions. This decision reflects a case-by-case evaluation strategy amid a growing appetite for higher-risk debt and banks' improved profitability.Additionally, the bank plans to redeem a separate $1.5 billion AT1 bond with a 7.5% interest rate on April 30. The AT1 bond market has seen increased activity, driven by narrow spreads and the need for issuers to absorb losses during financial distress.
deutsche bank opts not to call at1 bond amid currency losses
Deutsche Bank AG has opted not to call one of its Additional Tier 1 bonds, breaking from the trend among European banks to redeem such debt at the first opportunity. The decision, influenced by potential losses of around €240 million due to a weaker euro, highlights the bank's case-by-case approach to bond management. Meanwhile, it plans to redeem a separate $1.5 billion AT1 bond on April 30, which may incur losses of approximately €180 million related to foreign exchange.
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