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What are AT1 bonds, and why are they risky?

AT1 bonds are popular among European banks as a way to build up safety buffers. While AT1s pay high interest to bondholders, their mechanics can make them a risky investment.

Deutsche Bank shares sink: What to know

Shares for Deutsche Bank are down Friday amid concerns the German bank will pay higher costs for financial derivatives, called credit default swaps that insure bondholders against banks defaulting on debt.