Deutsche Bank is dipping back into an area of the credit derivatives market in Europe that it all-but pulled out of in 2014.
Bloomberg News reports that the bank has resumed trading options on credit-default swap indexes for the first time in more than 18 months, according to two people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.
Deutsche Bank stopped buying and selling most credit-default swaps on individual companies in late 2014, when it cut as many as 10 credit traders in London, including index and options traders. CEO John Cryan signalled on Wednesday he may have to deepen cost cuts after second-quarter profit was almost wiped out by a slump in trading and restructuring costs.
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