Deutsche Bank Shares Tank, Fueling Banking Crisis Fears

Deutsche Bank shares tumbled as much as 16 percent on Friday after the cost of insuring the financial institution’s debt against default risks increased to the highest levels in about four years.
The company’s five-year credit default swaps (CDS), a type of default insurance for bondholders, surged above 220 basis points, up from 142 basis points earlier this week. This is the largest jump since the end of 2018. Despite the recent concerns, Deutsche CDS are below their 300-basis-point record that occurred in 2011 during the eurozone debt crisis.
The higher CDS values go, the greater the odds the market sees the issuer defaulting….}