A pedestrian passes a Deutsche Bank AG bank branch in Frankfurt, Germany, on Monday, March 18, 2019.Photographer: Alex Kraus/Bloomberg
FRANKFURT: A Deutsche Bank AG Additional Tier-1 (AT1) bond has surged to the highest in three years after the lender decided against redeeming the debt, choosing instead to let the coupon nearly double.
Skipping a call is an unusual step and traditionally frowned upon by investors, though in this case funds snapped up the debt given the coupon is set to jump to around 8.47%.
