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A decision taken by Deutsche Bank in December 2008 not to call one of its callable upper tier 2 bonds took the funding market by surprise and led to a re-evaluation of the traditional methods for pricing callable bonds. Previously always priced to the call date - and therefore cheaper than a bullet bond - Deutsche created an uproar when it decided against cashing in a deal on the basis that it wanted to maintain the attractive funding levels on offer.

"It's a call at a spread, but it is always as

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