Nervousness is dragging European banks along again: the share price of the major banks fell sharply again this morning.
Euskaraz irakurri: Deutsche Bankek % 10etik gorako beherakada izan du, CDS aseguruak direla eta
Deutsche Bank, the leading bank in Germany, is suffering more than 10% declines this Friday dragged by a default guarantee insurance policy known as credit default swaps (CDS) that allow an investor to take out a type of policy that indemnifies if a debtor does not serve his creditors.
The Euro Stoxx 600 banking sector index fell more than 3% before entering the mid-session, with Deutsche Bank leading the way.
The price of the Old Continent’s major banks recorded another sharp drop this Friday, suggesting that recent interventions by the financial authorities have not calmed investors’ nerves as major central banks continued to raise interest rates despite the turbulence unleashed by the bankruptcy of banks in the United States and the rescue of Credit Suisse.
Germany’s largest bank, whose cost of non-payment guarantee insurance (CDS) has risen sharply, announced this Friday its intention to prepay $1.5 billion (1.379 billion euros) of Level 2 subordinated debt with fixed interest rates. pay 2028, on 24 May 2023 at 100% of your principal, plus accrued interest until (but excluding) the redemption date.
For its part, Scandinavian Nordea was down more than 7% and Swiss UBS was down 5.5%, while German Commerzbank and French Société Générale lost nearly 5%, respectively, and Italian UniCredit and Société Générale lost nearly 5%. French BNP Paribas fell more than 3% each.
Similarly, the shares of other major European banking entities such as ING, Intesa Sanpaolo or ABN Amro fell by more than 2%.
In the case of Spain, Banco Sabadell led the declines at 11 a.m. with a drop of 6.85%, followed by Unicaja Banco (-5.62%), BBVA (-5.35%), Banco Santander (-4.97 %), CaixaBank (-4.81%) and Bankinter (-4.71%).
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
