Short sellers bet against PBB bank

Short sellers are betting against almost 8 per cent of Deutsche Pfandbriefbank’s (PBB) shares due to concerns about the bank’s exposure to the U.S. commercial real estate market, filings showed on Monday, according to Reuters.

Meanwhile, PBB’s shares rose by 3.9 per cent in Frankfurt’s morning trade, following a significant drop last week when a major investor reduced its stake.

The bank also made unscheduled announcements to reassure its shareholders.

The Federal Gazette reveals that short sellers, who are betting on a decrease in the bank’s share price, have positions against 7.57 per cent of the bank’s shares.

This figure might not fully represent the positions, as only bets of 0.5 per cent or more need public disclosure while PBB chose not to comment on this matter.

Over the weekend, Handelsblatt reported that short sellers are placing the largest bets on PBB, which is a stock in the country’s top share indexes.