Deutsche Bank increases structured notes sales tied to Agricole Credit

By IVCPOST Staff Reporter

Aug 16, 2013 11:47 AM EDT

Deutsche Bank, Germany's principal creditor, sold USD2.5 million junior-notes.The subordinated structured notes are bound by the debt incurred by Credit Agricole, according to compiled reports by Bloomberg. In July of this year the offered securities were at its highest since January of 2012, increasing USD22.4 million.

The offered structured notes are designed to provide modified stakes to stakeholders who are also vulnerable to the credit risks of issuers. Choosing a bond decreases the capital structure and enable banks to generate guarantees with higher capability for profits.

Adrian Neave of London's Gilliat Financial Solutions said, "By taking on more credit risk, investors can receive coupons on subordinated bonds that can be noticeably higher than on the senior unsecured bonds usually used in structured products."

Bloomberg data shows that Deutsche bank procured subordinated rates amounting to USD18 million in this year alone.  On July 30 Banco Popular Espanol SA of Portugal also peddled junior interest rate-linked notes amounting to a total of USD20 million.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics