Mar. 12 at 1:06 PM
$SPY Ummmmm,
$DB Deutsche Bank shares fell about 5% after the bank disclosed risks linked to its growing private credit portfolio in its annual report.
The bank said its private credit exposure rose about 6% in 2025 to nearly €26 billion, up from €24.5 billion in 2024. While it reported no major direct exposure, it warned of potential indirect credit risks through interconnected portfolios and counterparties.
The disclosure comes amid rising investor concerns about the roughly
$2 trillion private credit industry, following weakening credit quality, heavy exposure to software companies, and several high-risk lender bankruptcies in the U.S. Deutsche Bank said it maintains conservative underwriting standards despite the sector’s increasing scrutiny.
$DB
Becareful, counterparty connection will cause a huge domino effect on all banking institutions. Jmho