JPMorgan defends Deutsche Bank stock, says market getting it wrong

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Shares of the German lender slid more than 11% on Friday following a spike in the company's credit default swaps Thursday night.

Credit default swaps act as a insurance for bondholders in the event of the company defaults. To be sure, there was no clear catalyst for the spike in Deutsche's credit default swaps. The move comes as concerns about the stability of European banks persisted. Earlier this month, Swiss regulators forced UBS to acquire rival Credit Suisse to shore up the country's banking industry. DB 1D mountain DB falls JPMorgan, however, is maintaining its overweight rating on Deutsche Bank.

Abouhossein pointed to three key strengths for Deutsche Bank: "Strong capital ratios with limited litigation concerns," "Strong liquidity ratios with limited deposit outflows in 2015-18, even [in] times times of stress," Strong profitability, with a net profit of €5 billion in 2022 "We are not concerned today about counterparty, liquidity issues with DBK being Top 5 FICC player globally with $9.5 billion in 2022 FICC revenues," Abouhossein said.

 

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well cds will also affect other banks, naturally already since more then a week.

JPMorgan .. the legal criminal

That bank that is/was involved in every single case of corruption, money laundering, market manipulation and so on is being defended by similar bank? Darling, these banks should have been closed since 2008. They are both cancers like Credit Suisse and many others.

Dear CNBC Losers, You gave me Leon Cooperman, and I love you for that! But,,, Jim Cramer, and Scott Gottlieb, what the hell was that!!! Now I learn more, and spend my time with Bannon, CortesSteve, Dave Brat, and Macro Mavens. Live and Learn I guess...

Hahaha...it's the market that doesn't get it

Translation: “We are in deep with the trillions in derivatives we have. If counter-parties keep dropping, we are SCREWED!!”

Don't say it,just buy it.

Morgan Stanley is holding bags!

Yeah, I always win when I tell the market it’s wrong 😁. “Stop filled”

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