- Deutsche Bank's shares fell up to 15%, closing down 8.5% in Frankfurt.
- Hedge funds are betting against the bank in the stock and credit-default swaps markets.
- German Chancellor Olaf Scholz publicly backed the lender.
- Credit default swaps on the five-year senior bonds were quoted at around 200 basis points.
- Short interest in Deutsche Bank reached the highest level since May on Tuesday.
Hedge Funds Seen Targeting Deutsche Bank in ‘Irrational’ Slide
Deutsche Bank AG shares fell and the cost of insuring its debt against default rose in sudden moves that some attributed to hedge funds seeking to profit from the broader turmoil roiling the financial industry.
Giulia Morpurgo
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