Deutsche Bank set to hit $ 1 billion windfall thanks to maritime betting
June 15 (Reuters) – Deutsche Bank (DBKGn.DE) is set to win up to $ 1 billion on a long-term bet on Israeli shipping company Zim (ZIM.N) after climbing in value at the following a record global freight rate, Bloomberg reported on Tuesday. https://bit.ly/2SzbMqt
Citing anonymous sources familiar with the matter, the report states that Mark Spehn, a troubled debt trader at the German bank, had wagered less than $ 100 million in the past five years to build up a position in the company through through bond and bank loans as shipping rates. tear down. https://bit.ly/2SzbMqt
Zim recovered to float on January 28 of this year and has nearly tripled in value since, generating massive gains for its backers and making one of the most successful initial public offerings.
According to data from Refinitiv, Deutsche Bank is the second largest shareholder in the company with a 13.68% stake, worth $ 923 million.
Zim said on June 4 that Deutsche Bank was among those selling shares of the company in a secondary offering worth $ 279 million.
If true, the numbers would make Zim’s trade one of the most profitable for the bank since its asset-backed securities division made bets against the US subprime industry in the run-up to the financial crash of 2008, grossing nearly $ 2 billion.
Report by Noor Zainab Hussain in Bengaluru; edited by Patrick Graham
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