German mortgage lender Deutsche Pfandbriefbank has become one of Europe’s most shorted stocks due to bad loans linked to US real estate.
The lender’s shares are now down 39% this year. Funds betting against the company include Millennium, Qube Research & Technologies, Wellington Management, Caius Capital and Kite Lake Capital.
“We think the pain is only just starting to hit,” said Malte Schmitter at Petrus Advisers, another firm shorting the stock.
Financial Times (£)
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