Deutsche Bank Jumps as Lender Said to Consider Bond Buyback

Deutsche Bank AG jumped the most in more than four years as Germany’s biggest bank considers a bond buyback to help ease concerns about its funds, according to a person with knowledge of the matter.

While the bank has ample cash to make the purchases, no decision has been made and a buyback may yet be deemed unattractive, the person said, asking not to be identified because the talks are private. 

Such a move would focus on senior bonds and probably wouldn’t include the firm’s riskiest debt, known as CoCos, the Financial Times reported Tuesday. Renee Calabro, a spokeswoman for the Frankfurt-based bank, declined to comment.

Deutsche Bank co-Chief Executive Officer John Cryan has been seeking to reassure investors and staff that the bank is “rock solid” after the shares erased almost 2 billion euros ($2.3 billion) of the company’s market value on Monday. 

While the lender said on the same day that it has more-than-sufficient means to pay coupons on its riskiest debt both this year and next, the statement did little to reverse a selloff in credit markets.

The shares soared as much as 11 percent, the biggest intraday gain since October 2011, trading at 14.74 euros at 10:08 a.m. in Frankfurt. The bank has lost about 36 percent of its value this year.

Deutsche Bank has about 53.8 billion euros ($60.8 billion) of senior debt outstanding, according to data compiled by Bloomberg. The weighted average maturity of its 144 billion euros of debt is six years.