Deutsche Bank CDS jump 21 basis points after stability concerns

A statue is seen next to the logo of Germany's Deutsche Bank in Frankfurt

LONDON (Reuters) – The cost of insuring Deutsche Bank’s <DBKGn.DE> debt against default jumped by 21 basis points on Friday after fresh reports over its stability rattled investors and sent shares to new all-time lows.

According to data provider Markit, credit default swaps <DB5YEUAM=MG> on Deutsche Bank’s five-year senior debt rose to 255 basis points from Thursday’s close of 234 basis points, yet still shy of the 7-month high of 260 bps hit on Tuesday.

Deutsche Bank assets have come under pressure again following a Bloomberg report that a number of hedge funds clearing derivatives trades with Deutsche had withdrawn some excess cash and adjusted positions, a sign of counterparties being wary of doing business with Germany’s largest lender.

(Reporting by Karin Strohecker; Editing by Jamie McGeever)