Deutsche Bank AG is paying twice as big a premium to borrow in international debt markets compared with a year ago, as investors demand higher compensation for the risk of future legal costs.
The bank agreed to 300 basis points of extra yield above benchmark rates in a $3 billion private sale of senior unsecured bonds on Friday, according to data compiled by Bloomberg. hat compares with the 143 basis points the bank paid in a non-private sale of similar notes in August 2015.
"They are trying to show they still have sizable access to funding, but they are paying up for it," said Paul Dilworth, a fixed-income analyst at Kames Capital Plc in Edinburgh, which oversees 50 billion pounds ($62 billion) of assets.
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