Leveraged financing flagship loses its luster: Deutsche Bank's market share shrinks to 3.6%, dropping out of the global top five rankings for the year.

Notice that Deutsche Bank Aktiengesellschaft (DB.US) is losing the advantage of leverage finance transactions. When the bank attempted to underwrite $4.3 billion in debt for a private equity firm acquiring two gambling companies, investors reacted tepidly. The German bank ultimately had to facilitate the deal by improving terms - offering investors more favorable pricing and adding risk protection mechanisms. This transaction was intended to support Apollo Global Management Inc's joint acquisition with gambling machine company Everi Holdings Inc. of a division of International Game Technology Plc, and is not the only leveraged finance transaction in which Deutsche Bank Aktiengesellschaft has recently encountered difficulties. Sources revealed that Financial Institutions, Inc., which was once among the top five in the industry, has seen a continuous decline in market share in recent years due to CEO Christian Sewing's strategic adjustments and regulatory requirements, and has become embroiled in multiple problematic transactions. Data shows that the bank has slipped to eighth place in the leveraged finance sector this year, leading only 3.6% of global transactions, a far cry from its peak in 2014 when it held 9% market share. Deutsche Bank Aktiengesellschaft is losing market share Revenue trajectory is showing a similar decline - estimated revenue for the first half of 2025 in Europe is plummeting by 35% to 74 million ($86 million), while the U.S. market is down 27% to $145 million. In the recent financial report, the decline in leveraged finance income contrasts sharply with impairment losses from unsold bonds. Chief Financial Officer James von Moltke admitted during an analyst conference call, "It was a weak quarter for the debt capital markets, particularly so for the leveraged debt capital markets." He revealed that the bank is adjusting its strategy, particularly with regard to high-risk transactions. Former Glory As a leader in the leveraged finance sector for decades, Deutsche Bank Aktiengesellschaft's decline can be attributed to multiple factors: Sewing's strategic contraction, regulatory pressure, and market dynamics. Scarce M&A deals have led to a reduction in high-fee projects, while the current trend of debt restructuring is not of interest to management. More critically, the rise of new competitors like private credit institutions has fundamentally changed the industry landscape. A series of high-level departures have further weakened its position: Ludovic Anglade, who served for 25 years, switched to Citigroup; Daniel Stevenson, Managing Director of Leveraged Debt Capital Markets, joined Haff Capital Management; senior bankers Alexandra Bass and Celine Catherine both moved to Wells Fargo & Company; Anastasia Cherneltskaya switched to Barclays. Talent loss has also affected the sales trading department, with Brad Duncan, Head of Distressed Debt Sales in the U.S., joining Morgan Stanley, and Greg Driscoll, former Head of High-Yield Sales, leaving in December last year. Sources revealed that Deutsche Bank Aktiengesellschaft is actively filling these vacancies. This year, they brought in high-yield trader Peter Ewing from Bank of America Corp. and recalled Jackson MacQuoid, who previously served as Director of Leveraged Finance Capital Markets for Mizuho Financial Group Inc Sponsored ADR. Michael Nelson, head of the U.S. market business at headhunting firm Sheffield Haworth, commented, "They have over two decades of world-class leveraged finance business," "Although they have faced talent challenges in recent years, they are actively working to address them." Problematic Transactions The Apollo gambling transaction is just one of the "tricky" junk bond projects recently underwritten by Deutsche Bank Aktiengesellschaft. Market participants also pointed out: the $1.2 billion high-yield bonds of Mohegan Tribal Gaming Authority in March priced after amendments to terms and structures, as well as two challenging issuances last year: $732 million in term loans for 1440 Food Company (related to the acquisition of the protein bar brand FitCrunch), which were initially slow to sell and ultimately digested by a syndicate; and the $830 million raised by Singapore booking platform Oyo for the acquisition of Motel 6, which barely completed after several setbacks. Of course, the bank successfully and promptly priced loans exceeding $1 billion each for fire equipment manufacturer Minimax Viking, pay-TV supplier Sunrise Financing Partnership, and medical equipment merchant WS Audiology. Deutsche Bank Aktiengesellschaft's CFO stated on Thursday that although the bank has recently increased investments in equity capital markets and high-grade debt, leveraged debt capital markets (LDCM) are still crucial. "When it comes to the broader LDCM business, we excel at this, so it's strategically important for us," von Moltke said. "It's one of our strengths in originating and advising business."