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Deutsche Bank AG has plenty of readily available funds even if some clients pull deposits, according to analysts, responding to a drop in the bank’s shares after some hedge funds reduced their exposure. Deutsche Bank has enough liquidity to handle more than two months of severe stress, including trading clients pulling back, Stuart Graham, an analyst at Autonomous Research LLP wrote in a note Thursday, citing the bank’s filings. Prime brokerage deposits of hedge funds probably only provide 3 percent of the bank’s funding, and the company has access to additional backstops from the European Central Bank, Goldman Sachs Group Inc. analysts led by Jernej Omahen said. Amid mounting concern about Deutsche Bank’s ability to withstand pending legal penalties, about 10 hedge funds that do business with the German lender have moved to reduce their financial exposure. The funds, a small subset of the more than 800 clients in the bank’s hedge fund business, have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News.

Source: Deutsche Bank Has Plenty of Liquidity Amid Stress, Analysts Say – Bloomberg