Deutsche Bank credit protection trades wider following Q3 losses

The cost of senior debt protection for Deutsche Bank has crept 5 basis points wider to 58bp-mid after the bank posted a third-quarter net loss of €299 million. In otherwise thin markets, credit derivatives traders in London said active buyers of protection were pushing spreads wider for Deutsche Bank today.

The German bank reported a dramatic increase in risk provisions in the third quarter to €752 million, nearly a five-fold increase from €135 million last time around. Traders said Deutsche's woes reflected an emerging "earnings crisis" in the German banking sector. The poor results came just a week after Germany's second-largest bank, HypoVereinsbank, revealed a net loss of €360 million with a large jump in loan provisions.

At the start of September, senior debt protection for Deutsche was

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