The day before yesterday $SIVB yesterday $CSGN tomorrow $DBK (+1,72%) ?
Credit default swaps (CDS) on Deutsche Bank are rising dramatically right now! Share price falls like a stone and pulls the DAX down.
Those who experienced 2008 know what this means. And anyone who knows Deutsche Bank's balance sheet a little has an idea of what a collapse would mean for Germany and the global economy.
And then there's this: "There is no cause for concern about the German banking sector, a spokesperson for the German government said on Friday." (Reuters)
Just a hint of what to keep on your radar for the next few days.
Addendum: The CDS on $DBK (+1,72%) now indicate an insolvency risk of 25% within the next 5 years. By the way, derivatives worth around €50,000 billion are on the books.
