The $5.4mn trade that triggered Deutsche Bank's global rout.

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Source: The Wall Street Journal
The $5.4mn trade that triggered Deutsche Bank's global rout.
Photo: The Wall Street Journal
TL;DR Summary

The recent selloff in Deutsche Bank's shares and bonds has raised concerns among regulators about the role of credit-default swaps in causing market stress. While some argue that the surge in the cost of insuring Deutsche Bank's debt against default through these derivatives reflected investor unease, others believe it contributed to the loss of confidence in the bank. The episode has drawn parallels to a similar situation with Credit Suisse last fall.

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