DB - Deutsche Bank: Still On The Sidelines Even More Than Before
With the severe measures taken by Deutsche Bank (DB) over the past few days in the background, the financial/financing markets are signaling of further liquidity issues.
This usually means that (at least) one financial institution is in trouble, causing other banks to reduce exposure, consequently pushing inter-bank (financing) rates up.
DB is the obvious immediate suspect, and many traders are now looking very unfavourably at the bank's off-balance sheet portfolio of derivatives. The $43.4 trillion (!) worth of portfolio is assumed to be a great risk, since many of its components might be