Citi buys $250bn Deutsche Bank single-name CDS portfolio
Leverage exposure drives big portfolio sale, with Citi aiming to collapse notionals by the end of the first quarter
Deutsche Bank sold a portfolio of single-name credit default swaps (CDSs) with a notional value of nearly $250 billion to Citi at the end of September last year as it reined in its single-name CDS trading business.
A source close to Deutsche Bank confirmed the size and timing of the trade. A Deutsche Bank spokesperson declined to comment.
According to industry sources, a $250 billion portfolio would represent around 5–10% of a large dealer's total CDS book, across index and single-name trades.
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