Deutsche Bank AG became the largest lender in at least four years to feel compelled to reassure investors and employees that it has enough cash to pay its debts.
Germany’s biggest bank said in a statement Monday that it has more-than-sufficient means to pay coupons on its riskiest debt both this year and in 2017. Deutsche Bank also published a note to employees from Chief Financial Officer Marcus Schenck that said the firm’s “capital and risk position remains strong.”
The cost of protecting Deutsche Bank’s debt against default has more than doubled this year, while its stock trades at about one-third of the company’s liquidation value.
Here is the article, here are additional links on the situation, few if any are positive. So far this year, European bank stocks are down about twenty percent, and the Japanese ten-year yield is now negative. It is worth repeating that we don’t actually know the end of the story for the strange economic situation much of the world has been in for some number of years now…