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Why did Deutsche Bank's CDs rise above 200 bps last week?

In Deutsche Bank's case, CDS on its five-year debt rose above 200 bps last week from 85 bps just two weeks ago, as investors fretted about the stability of the broader European banking system. The ECB's Enria argued that central clearing for CDS would improve transparency, reducing the risk of volatility.

Why did Deutsche Bank move to a four-year high?

The moves followed a surge in the cost of insuring Deutsche Bank's debt against default via credit default swaps (CDS) to a more than four-year high last week.

Is Deutsche Bank's volatility a sign that investors could be spooked?

Andrea Enria, the banking supervisory chief at the European Central Bank, highlighted the volatility in Deutsche Bank's securities - including CDS - as a worrying sign of how easily investors could be spooked.

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