Deutsche Bank mulling repurchase of its own bonds, shares jump

Shares in Deutsche Bank jumped sharply following a report the German lender was studying the possibility of buying back some of its bonds in a bid to help ease investors' concerns about its financial position.

According to the Financial Times, which cited a person with knowledge of the matter, no decision had yet been taken and the possibility existed that a repurchase might yet be deemed unattractive.

As of 11:33 GMT shares in the German lender were rising by 9.12% to €14.96, their biggest gain in over four years.

The FT reported that the purchases would be concentrated on Deutsche Bank's senior bonds and probably would not include its riskiest debt, known as CoCos.

A drop in Deutsche Bank's share price on 8 February wiped almost €2bn off the lender's market capitalisation.

In a memo sent to staff the next day, and made public by the lender, its co-chief executive said the bank's balance sheet was "rock solid", but that failed to stem the selling.

Deutsche Bank had more than enough "capacity and commitment to pay coupons to investors” who hold its CoCos, Cryan said.