Ongoing Concerns For Investors In Structured Products Backed By Deutsche Bank

We raised concerns in the spring of last year and again in the summer of this year regarding structured notes backed by Deutsche Bank. These concerns are now heightened in light of the fact that institutional lenders are factoring these concerns into how they deal with Deutsche Bank. As recently reported by the Financial Times, Deutsche Bank’s credit rating has been downgraded after three consecutive years of unprofitability. This is an important fact for fixed income investors who invested or are thinking about investing in Deutsche Bank-backed Structured notes.

Received A Recommendation For Investing In Deutsche Bank Structured Notes? Be Sure To Review

If a financial advisor is recommending that you invest in Deutsche Bank Structured Notes, review the links above and take into consideration that Deutsche Bank is having to pay more to borrow money to fund itself and pay more to insure its debt. Virtually all of the unsecured debt it sold this year, meaning the bonds or notes it gave unsecured lenders, has gone down in value. Although governments and regulators have made adjustments to help Deutsche Bank, that might not be enough.

If your financial advisor is telling you that you will be fine as long as you hold the structured note until maturity, ask the advisor what happens if Deutsche Bank is unable or unwilling to pay the debt. If the advisor says that will never happen, ask the advisor what happened to Lehman Brothers structured notes when Lehman Brothers failed. Let’s remember, if the financial advisor is wrong, it is your money and not the financial advisors that are lost.


For a basic video breaking down structured notes in general, We believe structured notes in general (ie not just Deutsche Bank structured notes) are investments that favor the issuer and the seller for more than the investor, even in situations where the issuer is financially healthy.


Vernon Litigation Group’s investigations and advocacy on behalf of investors related to structured notes have been featured in Forbes, Barron’s, and AARP. Vernon Litigation is a team of financial litigators in Naples and Atlanta that represent clients in courtroom litigation, arbitration, and negotiations throughout the United States. Our lawyers represent investors in federal court, state court, mediation, and arbitration (including FINRA, JAMS, and AAA arbitration). For more information, visit our website at or contact Vernon Litigation Group by phone at (239) 319-4434 or by e-mail at

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