20th November 2008 worries about further large loan losses at the banks have the shares of the credit for midweek again under heavy selling pressure. The share prices of German bank Commerzbank and are then to longtime lows fallen. On the financial markets will be after the losses by second-American mortgage bonds now because of the recession a further wave of fear loss, explained Dieter Hein, banking expert at the independent analysis Fairesearch house.
Meanwhile, the company benefited Shares of Deutsche Postbank to a report by the business magazine "Capital", according to Deutsche Bank on further options transactions more shares to secure the Postbank wanted. Deutsche Bank plans to know the acquisition of Postbank and has already agreed option transactions. Postbank shares jumped out until shortly before the close of trading by 11 percent to 16.56 euros. A spokesman for Deutsche Bank said in the evening, you do not have a fast plane complete takeover of Postbank.
Bank index since the beginning of the year by 65 percent
Shares of Deutsche Bank sackte until the close of trading by 8.8 percent on the day's low of 21.39 euros, its lowest level in years. Last December the paper was still well worth 90 euros have been. The stock market valued Germany's biggest bank so only with 12.5 billion euros, although at 30 September a capital of 36.6 billion euros has been expelled. The ratio of stock market price to book value is calculated according to the information provider Bloomberg 0.36. Values below 1 for this ratio indicate that the stock market further losses at the expense of equity expected. Shares of Commerzbank fell on the multi-year low of 6.03 euros and so on a market value of only 4.4 billion euros. When it is the price-book value ratio of 0.28.
Similar to the two leading German banks is certainly the most European financial institutions. The relevant bank index on Wednesday stood at the close of trading 7 percent lower. In the past four weeks he has fallen by 29 percent since the beginning of the year by 65 percent. European Bank shares have this year lost more than American. In any event, the KBW bank index of 24 leading U.S. financial houses since the beginning of the year only around 50 percent.
Even tranches with top grades go heavy losses
On Wednesday, the bank statement of America's leaders Kenneth Lewis, the stock market sentiment charged that the credit card business with the highest losses in its history zusteuere says Guido Hoyman, a banking expert at the private bank Metzler in Frankfurt. Like the mortgage loans and credit card loans were partly in packaged and structured bonds to investors around the world have been sold. So now feared that these losses also banks in Germany and Europe could take.
The total volume of U.S. credit card loans to nearly 1000 billion U.S. dollars respectively and is thus almost as high as the second volume of subprime mortgage loans, which at the beginning of the crisis in 1200 billion U.S. dollars was budgeted. What a tragic loss now in subprime lending fears are put to the ABX indices read: Even some of the best installments with AAA indicate losses of more than 50 percent.
High loan losses feared
According to Hein by Fairesearch on the stock exchanges will also fears that the recession is also to a sharp rise in loan defaults by companies will lead. Again, this would be borne by the banks go. Experts hold the position for two reasons for particularly sensitive: First are the three leading economies United States, Europe and Japan into recession advised. The fear is that the downturn still gaining momentum. In previous cycles, this cyclical synchronism usually not so strong, so that the growth in a region of the world slowdown could dampen elsewhere.
Moreover, at least part of the company relatively high debt. This applies for example, some companies, the private equity investment companies have come. Frequently, the new holder of the acquired companies forced to large-scale loans to high dividend payouts in favor of the owner to finance. Should the recession in the proceeds of the acquired company behind the projections remain, this could lead to difficulties, the loans to operate.
Deutsche Bank: fear of further losses
On the financial conference "Euro Finance Week in Frankfurt, Josef Ackermann, the head of Deutsche Bank, on Monday revealed this concern. For many takeover loans ( "leveraged loans") are the margins due to the fierce competition among banks often too low, Ackermann said. But the banks did during the takeover euphoria even on loans with very lax conditions ( "covenants light") appeared, later on loans for which the investor actually due to the interest accrues can ( "payment in kind"). Deutsche Bank was one of the leading financiers of this takeover wave.
The fear of further losses at Deutsche Bank is also on large volume of their "Level 3" fixed assets. These are the assets, the accounting rules actually at market rates should be. Missing, however, at current rates, allow the rules, these assets such as structured bonds, leveraged loans and derivatives as "Level 3" assets and classify models to evaluate ( "mark to model").
Of greater transparency no trace
Deutsche Bank had at the end of the third quarter of 92 billion euros as "Level 3" assets, according to 88 billion euros at the end of 2007. Explains the increase in the bank with market distortions in securitized housing loans and credit correlation business. " The scant information can be feared that straight loss "toxic" asset positions as "Level 3" have been classified. Despite assurances top of the group, for more transparency, we are banking on the large Level-3-asset virtually no explanation, especially not, what amounts to the various asset classes accounted for or what models the bank has used.
According to the IFRS rules, the total assets of Deutsche Bank at the end of the third quarter of 2.06 trillion euros, compared with Germany's gross domestic product amounted to 2007 2.4 trillion euros. The gross volume of derivatives portfolios of Deutsche Bank was the end of 2007, even astronomical 47 trillion euros. Although the bank quantified the net market value of the portfolio to "only" minus 5.3 billion euros. But the crisis has illustrated that the counterparty risk, rather the gross value makes the derivatives business is considerable. In accordance with the rules supervision of the bank calculated risk-weighted assets at the end of September amounted to 319 billion euros. Since the outbreak of the crisis, the Bank has a total of 8.3 billion euros written, about 2.6 percent of risk-weighted assets. It is so far relatively well through the crisis came.
Meanwhile, the company benefited Shares of Deutsche Postbank to a report by the business magazine "Capital", according to Deutsche Bank on further options transactions more shares to secure the Postbank wanted. Deutsche Bank plans to know the acquisition of Postbank and has already agreed option transactions. Postbank shares jumped out until shortly before the close of trading by 11 percent to 16.56 euros. A spokesman for Deutsche Bank said in the evening, you do not have a fast plane complete takeover of Postbank.
Bank index since the beginning of the year by 65 percent
Shares of Deutsche Bank sackte until the close of trading by 8.8 percent on the day's low of 21.39 euros, its lowest level in years. Last December the paper was still well worth 90 euros have been. The stock market valued Germany's biggest bank so only with 12.5 billion euros, although at 30 September a capital of 36.6 billion euros has been expelled. The ratio of stock market price to book value is calculated according to the information provider Bloomberg 0.36. Values below 1 for this ratio indicate that the stock market further losses at the expense of equity expected. Shares of Commerzbank fell on the multi-year low of 6.03 euros and so on a market value of only 4.4 billion euros. When it is the price-book value ratio of 0.28.
Similar to the two leading German banks is certainly the most European financial institutions. The relevant bank index on Wednesday stood at the close of trading 7 percent lower. In the past four weeks he has fallen by 29 percent since the beginning of the year by 65 percent. European Bank shares have this year lost more than American. In any event, the KBW bank index of 24 leading U.S. financial houses since the beginning of the year only around 50 percent.
Even tranches with top grades go heavy losses
On Wednesday, the bank statement of America's leaders Kenneth Lewis, the stock market sentiment charged that the credit card business with the highest losses in its history zusteuere says Guido Hoyman, a banking expert at the private bank Metzler in Frankfurt. Like the mortgage loans and credit card loans were partly in packaged and structured bonds to investors around the world have been sold. So now feared that these losses also banks in Germany and Europe could take.
The total volume of U.S. credit card loans to nearly 1000 billion U.S. dollars respectively and is thus almost as high as the second volume of subprime mortgage loans, which at the beginning of the crisis in 1200 billion U.S. dollars was budgeted. What a tragic loss now in subprime lending fears are put to the ABX indices read: Even some of the best installments with AAA indicate losses of more than 50 percent.
High loan losses feared
According to Hein by Fairesearch on the stock exchanges will also fears that the recession is also to a sharp rise in loan defaults by companies will lead. Again, this would be borne by the banks go. Experts hold the position for two reasons for particularly sensitive: First are the three leading economies United States, Europe and Japan into recession advised. The fear is that the downturn still gaining momentum. In previous cycles, this cyclical synchronism usually not so strong, so that the growth in a region of the world slowdown could dampen elsewhere.
Moreover, at least part of the company relatively high debt. This applies for example, some companies, the private equity investment companies have come. Frequently, the new holder of the acquired companies forced to large-scale loans to high dividend payouts in favor of the owner to finance. Should the recession in the proceeds of the acquired company behind the projections remain, this could lead to difficulties, the loans to operate.
Deutsche Bank: fear of further losses
On the financial conference "Euro Finance Week in Frankfurt, Josef Ackermann, the head of Deutsche Bank, on Monday revealed this concern. For many takeover loans ( "leveraged loans") are the margins due to the fierce competition among banks often too low, Ackermann said. But the banks did during the takeover euphoria even on loans with very lax conditions ( "covenants light") appeared, later on loans for which the investor actually due to the interest accrues can ( "payment in kind"). Deutsche Bank was one of the leading financiers of this takeover wave.
The fear of further losses at Deutsche Bank is also on large volume of their "Level 3" fixed assets. These are the assets, the accounting rules actually at market rates should be. Missing, however, at current rates, allow the rules, these assets such as structured bonds, leveraged loans and derivatives as "Level 3" assets and classify models to evaluate ( "mark to model").
Of greater transparency no trace
Deutsche Bank had at the end of the third quarter of 92 billion euros as "Level 3" assets, according to 88 billion euros at the end of 2007. Explains the increase in the bank with market distortions in securitized housing loans and credit correlation business. " The scant information can be feared that straight loss "toxic" asset positions as "Level 3" have been classified. Despite assurances top of the group, for more transparency, we are banking on the large Level-3-asset virtually no explanation, especially not, what amounts to the various asset classes accounted for or what models the bank has used.
According to the IFRS rules, the total assets of Deutsche Bank at the end of the third quarter of 2.06 trillion euros, compared with Germany's gross domestic product amounted to 2007 2.4 trillion euros. The gross volume of derivatives portfolios of Deutsche Bank was the end of 2007, even astronomical 47 trillion euros. Although the bank quantified the net market value of the portfolio to "only" minus 5.3 billion euros. But the crisis has illustrated that the counterparty risk, rather the gross value makes the derivatives business is considerable. In accordance with the rules supervision of the bank calculated risk-weighted assets at the end of September amounted to 319 billion euros. Since the outbreak of the crisis, the Bank has a total of 8.3 billion euros written, about 2.6 percent of risk-weighted assets. It is so far relatively well through the crisis came.
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