Home » Another major international bank shows first signs of financial distress

Another major international bank shows first signs of financial distress

Sentiment on global financial markets can change in an instant and with that shift, global companies can shed billions of dollars in value.

Silicon Valley Bank, Signature Bank, First Republic and Credit Suisse have all felt the wrath of the financial markets.

Last night, Germany’s Deutsche Bank was in the firing line.

At one point in the trading session, the stock was down 14 per cent, but it recovered to close down 8 per cent.

However, for a major international bank with well over $1 trillion in assets and more than 80,000 employees, even the slightest whiff of trouble at the bank is a source of concern.

A surge in the price of the bank’s credit default swaps sparked the sell-off.

It’s a form of insurance for investors if they feel like there’s an increased chance of not getting their money back.

They “swap” the risk of a negative return on their investment with another party, for a price.