In any normal world this is a really awful moment for existing DB longs. We don’t inhabit that world anymore….
Deutsche Bank Prices €8 Billion Stock Offering At 35% Discount
This is amazing. If you were a DB long, the correct move would have been to sell on Friday and then buy some of these new shares at a whopping -35% discount today.
What “should” happen in a normal market is that the shares would be pummeled by this news, perhaps by the entire 35%.
But that’s not how these “”markets”” work anymore. They are so tightly controlled now that nothing appropriate ever happens anymore.
Case in point, here’s DB in the pre-market (er…pre-“”market””) just seconds ago:
Not even down -2.5%(!!)
And try to act surprised when it somehow doesn’t budge all day, wobbles slightly, and then vaults into the final minutes of the close to ‘they’ can come out with a set of headlines about how “investors” were cheered by the move, etc.
But make no mistake, in any normal world this is a really awful moment for existing DB longs. We don’t inhabit that world anymore….