Cheap money is flooding Europe, and it’s not just governments that are benefitting.
Deutsche Bank, Germany’s largest bank, became the latest firm to take advantage of a massive appetite among investors for corporate bonds. Pension funds and insurance companies in particular are looking for any place to park their money that can still generate a semi-decent return amid record-low interest rates across the European continent.
Deutsche Bank on Monday sold €1.25 billion, or $1.42 billion, in so-called Tier-II bonds with a maturity of 10 years, a move that will help the bank meet new and tougher reserve requirements from financial regulators in Europe. It follows other moves in the last two years, including raising capital and issuing convertible bonds, which have helped the bank increase its reserves and put the bank in a more stable outlook.