Deutsche Bank Plunges On Latest Debt Trading Revenue Warning

Tyler Durden's picture




 

First it was Jefferies. Then Citi. Now it's Deutsche Bank's turn:

  • JAIN EXPECTS 3Q DEBT TRADING REV. TO DECLINE `SIGNIFICANTLY'
  • JAIN SAYS CB&S AFFECTED BY MARKET ENVIRONMENT
  • JAIN SAYS 3Q TRADING RESULTS DIDN'T BENEFIT FROM CATALYST
  • JAIN EXPECTS TO TAKE ADDITIONAL LITIGATION RESERVES

Stock promptly plunges because nobody could have possible foreseen this...

Shortly, everyone else. Which is funny, because a week ago we asked:

Just how, if at all, are banks hedged or providioned for an increase in volatility and/or rates from these levels, if a mere 4% blimp in equity markets caused Jefferies to nearly write-down it entire bond-trading revenue for the quarter?

We now know: not at all.

We also said: "And now that Jefferies is in the record books, just how bad with bond
trading results for the rest of the big banks be? We should know in
about 4 weeks."

Answer: very bad.

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