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Bond Market News
Capital Group Exits 5% Stake in Deutsche Bank for €1.27bn
April 13, 2022
Capital Group, the second-largest shareholder in Deutsche Bank sold a 5% stake, worth €1.27bn ($1.4bn), with the bank’s stock falling more than 10% after the sale. In January US private equity group Cerberus also started to cut its Deutsche Bank holding. Last month Capital group sold a £900mn ($1.1bn) stake in Barclays. All these activities indicate Capital Group has lower confidence in European banks, as per FT. As of January 22, Capital Group was the top shareholder in Italy’s UniCredit and France’s Societe Generale with a 6.4% and 7.8% holding. FT notes that sentiment on European banks has fallen due to the Russia-Ukraine war, besides misconduct issues in legacy, fragmented markets, and underinvestment in technology, underperformed over the US and Asia banks in terms of profitability.
Deutsche Bank’s dollar bonds were trading lower, its 7.5% perp down over 0.5 points to 101.5 yielding 7.12%.
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