The German Deutsche Bank (A3/BBB+/BBB+) came to the market with a new Euro denominated Additional Tier 1 (AT1). It is the first AT1 issued by the bank since they decided to not call their $6.25 notes in April last year. We acknowledge the strong effort made by the group to restructure the franchise and reduce costs. The company has been managing successfully through the Covid19 pandemic, achieving its restructuring plan targets.
While execution risks remain, we think that capital, liquidity and asset quality ratios are more solid than in the past. Therefore, current spreads offer value at each level of the capital structure. We recommend the new € 4.625% Call 27s bonds (DE000DL19VZ9).