Deutsche Bank securitizes loans to SMEs

The Deutsche Bank has completed the securitization of risks resulting from some 2300 loans granted to small and medium-sized entities. These risks were securitized by the issue of so-called Credit Linked Notes at a total nominal value of 2.1 billion Euro and a redemption period of 10 years. These securities were bought by European and Asian institutional investors. For the first time the securitized loans also comprised overdraft facilities. Another 1.9 billion Euro were securitized by means of Credit Default Swaps.

This securization programme is the fourth one in a whole series by which since 2004 Deutsche Bank have been securitizing the risks arising from loans to SMEs. By doing so the bank not only creates space for additional business with it´s small and medium-sized clients, but at the same time the market price of credit risks established in the course of such a securization transaction also helps the bank to review its price finding policies for further loans. According to Deutsche Bank further securization transactions of loans to SMEs are being planned. GERMAN