The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Deutsche has received a cautious vote of creditor confidence. The German bank is issuing expensive debt. That shows it can access markets, despite a feared $14 billion U.S. regulatory fine. Its less powerful a signal than buying it back, as Deutsche Bank did in February but at least shows investors dont fear losses that could eat into senior debt.
The German bank is issuing like gangbusters. It sold $3 billion of five-year bonds on Oct. 7, and has just raised a further $1.5 billion, after an investor wanted more. The banks motives may be largely practical: it needs to issue about $30 billion of bonds by year-end, and by the end of June was two-thirds…
Read the full article at: http://blogs.reuters.com/breakingviews/2016/10/12/deutsche-gets-cautious-vote-of-creditor-confidence/