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Shares of Deutsche Bank fell more than 8% in early trading today following a surge in credit default swaps overnight as concerns persist over the stability of European banks.
Shares of the German lender fell for the third consecutive day and lost more than a fifth of their value over the month. Credit default swaps — a form of insurance for a company’s bondholders against its bankruptcy — jumped to 173 basis points Thursday night from 142 basis points the day before.
UBS’s emergency bailout of Credit Suisse in the wake of the bankruptcy of US-based Silicon Valley Bank triggered worries about contagion among investors, exacerbated by further monetary policy tightening by the US Federal Reserve Wednesday.