(Bloomberg) -- Deutsche Bank AG’s shares have recovered from the selloff sparked by the U.S. Department of Justice’s request for $14 billion to settle a probe tied to its mortgage-backed securities business.
The stock rose for a fourth straight day, increasing 1.5 percent to 13.22 euros at 9:22 a.m. in Frankfurt, paring losses this year to about 41 percent. Deutsche Bank closed at 13.10 euros on Sept. 15, hours before the lender disclosed that the Justice Department’s opening position in settlement negotiations tied to residential mortgage-backed securities.
Chief Executive Officer John Cryan has been under pressure to restore investor confidence, with a slump in shares compounded by concerns over Deutsche Bank’s ability to absorb mounting legal costs. While the CEO has said he doesn’t plan to raise capital and expects U.S. authorities to scale back their initial request, the shares reached a record low last month.
The company’s 1.75 billion euros ($1.9 billion) of undated 6 percent CoCo bonds were at 78.7 cents on the euro, down from 82.8 cents on Sept. 15, and now yield 11.4 percent to their call date in April 2022, data compiled by Bloomberg show.
Deutsche Bank, which runs Europe’s largest securities firm, is scheduled to report third-quarter earnings on Oct. 27.