Deutsche Bank Debt Costs Prove to Be Key Obstacle in Turnaround Effort

The video discusses the challenges faced by banks, particularly Deutsche Bank, due to rising financing costs and low revenues, which limit their investment capabilities. Deutsche Bank's credit rating is low compared to other European banks, leading to higher costs. The bank is marketing bonds at higher rates than its peers, reflecting its credit risk. The video also covers the potential merger with Commerce Bank and the need for Deutsche Bank to raise more funding, which could further impact its creditworthiness.

What factors contribute to Deutsche Bank's current credit rating?

What does the term 'junk' refer to in the context of Deutsche Bank's credit rating?

What is the significance of the costs Deutsche Bank is incurring in the current market?

How does Deutsche Bank's credit risk compare to that of Commerce Bank?

What are the implications of Deutsche Bank needing to raise subordinate funding?