Deutsche Bank dashes back to bond market


Deutsche Bank made a rapid-fire return to the US high-grade bond market on Tuesday, satisfying investor demand by tapping last week’s $3 billion deal for another $1.5 billion in fresh cash.

Investors who bought into Friday’s deal were clamoring for more, leading the bank to sell new debt for the second straight session – and show it still has significant access to funding. Deutsche’s bond spreads have been under pressure since September, when the US Department of Justice asked the bank to pay $14 billion to settle an investigation into its selling of mortgage-bond securities.

But after raising $4.5 billion over two days, both times from reverse inquiry, the bank instilled some confidence that it is making progress in putting some problems behind it. Deutsche paid a new issue concession of around 50bp on Friday’s deal, which was a chunky premium compared to its outstanding bonds.

But it was broadly in line with where its paper was trading after the sell-off occasioned by the DoJ request.Tuesday’s self-led tap of its 4.25 percent October 2021s priced at 100.263 and a spread of 290bp over Treasuries for a yield of 4.191 percent, offering investors a premium of around 25bp.

The bond that priced Friday, which was sold to a limited number of investors, had rallied by up to 40bp in secondary markets after clearing at 300bp over Treasuries.Many of the same investors bought in again on Tuesday. Friday’s deal was the first Deutsche Bank had sold in the US dollar market in five months.



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Viliyana Filipova
My name is Viliyana Filipova and I’m working as content writer and analyst of Business News Feeds Journal. I'm writing about finance statements, business analyze and employment for Central and Eastern Europe, Russia and Middle East.

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