D Bank decides not to repay €1bn bond

Discussion in 'Wall St. News' started by Banjo, Dec 17, 2008.

  1. Banjo


  2. Rocko1


    Anyone know what those bonds are and who's holding them?
  3. Illum


    Id bet its retail, old people.
    otherwise they'd pay it.
  4. They said to the bondholders they didn't ask nicely so f.u.

    Remember to be respectful when going to cash in your bonds, it could happen to you
  5. Sounds like it's time to buy some puts on DB.
  6. AAA30


  7. kaciara


  8. dont


    Banks issue these as capital but to count as capital they must have at least five years to maturity, so they make them callable with a punitive rate if they don't call them.
    In this case euribor +88bp.

    Problem is most people assume they will be called and so price them as normal bonds with the call date as the maturity date.

    OOPs :D