Market roundup - Deutsche Bank mess - No signs of stress yet in Euro money market – Tip TV

Is Deutsche Bank mess a ‘Lehman moment’?

Will German government bailout Deutsche Bank? If no, will we have a 2008 style crash?

These are some of the questions that are being asked by investors across the globe. In today’s opening segment, Marc Ostwald, Strategist at ADM Investor Services International sheds light on the Deutsche Bank issue. After watching this segment, viewers would be convinced that Deutsche Bank is not a ‘Lehman moment’ or end of world scenario; however, doing nothing is also not an option anymore. Ostwald is joined by Tip TV's Zak Mir.

Key points – Ostwald

Four options to address Deutsche Bank mess – Rights issue, Approach ECB, Government bailout, depositor bail-in

We do know they are undercapitalized. It is about access to liquidity and not solvency. Key question now is if they don’t get access to liquidity.

No signs of stress in Euro market but may be in Euro-dollar market… Libor-OIS spread is on the rise.