Thursday, November 08, 2007

Deutsche Bank Buybacks & Foreclosures

I just couldn´t resist. Every time we hear the phrase "buyback" the stock jumps. It doesn´t matter if these buybacks will occur or not. I have been stumbling on a review of what the buybacks have done for the shareholders of Deutsche Bank. Taking todays share price they buybacks have resulted in a loss of over $ 350 mio. So far....... I assume that their focus now that the shares are trading around 85 and 30 percent of the peak is to preserve their core capital ...... Nice timing!

Da konnte ich einfach nicht wiederstehen. Jedesmal wenn der Begriff "Aktienrückkauf" in den Mund genimmen wird steigen in der Regel die Aktien. Und das unanhängig davon ob diese Käufe auch jemals durchgeführt werden. Ich bin in den letzten Tagen auf diese Betrachtung der Rückkäufe durch die Deutsche Bank gestolpert. Und basierend auf dem aktuellen Preis sieht es ganz so aus als wenn hier mal eben 250 Mio € " nicht optimal and die Aktionäre zurückgegeben worden sind. Bisher....... Und ich kann mir sehr gut vorstellen das da der Aktienkurs knappe 20% vom Durchschnittskurs und ca. 30 % from Hoch zurückgekommen ist der Focus jetzt eher auf die Stärkung des Kernkapitals liegt...... Tolles Timing!

And when looking at the following graphs and other charts from their analyst presentation i think they already regret some of the buybacks .....

Und wenn man sich die nachfolgenden Grafiken und die Chart der Analystenpräsentationansieht bin ich mir ziemlich sicher das Sie einige der Aktienrückkäufe schon bereuen....

Foreclosure wave sweeps America / BBC
Cleveland, Ohio, is an industrial city on the banks of Lake Erie in the US "rust belt".

It is the sub-prime capital of the United States. One in ten homes in the city is now vacant, and whole neighbourhoods have been blighted by foreclosed, vandalized and boarded-up homes.


Many of these homes are now owned by the banks and investment pools owning the mortgages, and the company making the most foreclosures in Cleveland is Deutsche Bank Trust, which acts on behalf of such investment

Next comes a raher grim view from Citi via the FT

Nachfolgend ein recht kritischer Bericht von der Citigroup via der FT

Beware the “uber leveraged” trio — Barclays, RBS and Deutsche

Research by Citi’s Simon Samuels suggests that, depending on the measure used, Europe’s banks need to fix capital deficits that run as high as 20 per cent - on average!

Most strikingly, however, are Europe’s “uber leveraged” trio — Barclays, RBS and Deutsche Bank — where capital deficits range from 60% to 80% of market cap.

To put this graph into perspective you have to click here .... The graph above shows the enlarged version of the right scale....

Um diese Grafik ins Verhältnis zu setzen ist ein Blick auf diesen Chart empfehlenswert....Mein vergrößerter Ausschnitt zeigt den rechten Teil der Skala.....

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Blogger jmf said...

China's Pyramid Scheme Finds Lessons in Japan: William Pesek

12:17 AM  
Blogger jmf said...

„Sachsen Funding I“ bittet um Zahlungsaufschub

2:02 AM  
Anonymous Anonymous said...

3:33 AM  
Blogger jmf said...


I love Monty Python!

3:45 AM  
Blogger jmf said...

Banks hammered as CDO defaults spike: liquidating positions may trigger firesale

Senior note holders at Carina, a $1.5bn CDO run by State Street in the US, have decided to push the vehicle into liquidation. On Thursday, S&P slashed Carina’s ratings: AAA debt was cut 18 notches to BB. S&P said that AAA debt would have been cut 20 notches had the CDO not decided to liquidate.

A liquidation of Carina’s portfolio will now put pressure on other CDO senior debt holders to follow suit.

FT Alphaville understands that 13 other CDOs have reported events of default to Standard & Poor’s - all triggered, like Carina, by over-collateralization ratio tests which are linked to the ratings in the CDO’s asset pools.

And senior debt holders in all of those CDOs - who are in control following “events of default” - are understood to want to exit positions as fast as possible, before liquidations depress asset prices and cripple collateralization ratios.

That’s got the market worried about a firesale.

5:25 AM  

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