Deutsche Bank's share price soared more than 13.7 per cent this morning, amid reports the German lender is poised to announce a multi-billion euro bond buyback.
The bank yesterday attempted to reassure staff and investors through an open letter in which co-chief executive John Cryan insisted it was "rock solid". It followed a note the night before saying it had enough capital buffers to cover its AT1 requirements, which come up in April.
But these messages appeared to only served to stoke jitters further, and Deutsche Bank's share price dropped further, making it one of the worst performing stocks so far this year.
Last night the FT reported that Deutsche Bank was now considering a bond buyback that would focus on its €50bn (£38bn) senior bonds currently in issue.
The move, which is designed to shore up the bank's tumbling valuation on the stock market, is unlikely to involve so-called contingent convertible bonds which have also suffered in recent days.