let's bring in simon ballard, well.rris is here as simon, was a mistake for deutsche to make this statement? has it focused attention rather than reassure? >> certainly it has exacerbated the situation. iny kept it to themselves the short-term and we wouldn't have seen this extent to selloff, but focusing on then, it's triggered a greater selloff. at the end of the day, we have to realize that it was designed default,ithout driving but now in the context of china and the energy market, the u.s. going to another rate rise, people are wondering just how close to the edge you can get. how much further will you have to fall? jonathan: what we are doing here's reassessing, repricing risk -- my question is but what happened if they did fail? moveu'd have a seismic across the financial market. yeah. it would be very ugly. jonathan: [laughter] i raise the question because it was designed to fail, and you wonder if we have appreciated the consequences of the fail. dan? >> if you want to look at what has happened, in particular with the prices, it's -- what you are seeing is a downgrade in expectatio

let us ask simon ballard who joins us now from london.t does the price of cocoa that we showed on the chart show about the financial health of deutsche bank overall? the interesting there is that while we have had him coming out and saying it's rocksolid, it's pretty short-term earnings problem. simon: as far as the broader market is concerned, the interesting question is that these co-co have not been tested. it is an environment that we find are sold in these days and we are encouraged to look at cocos without anyone testing with these look like under stress. the fact that credit sites came out overnight questioning deutsche bank's ability to meet the coupon payments on their co-cos has been raising questions about the co-co market itself. it is feel the selloff we are seeing globally today at a time when we are already suffering from liquidity and a defensive investor based versus a global macro outlook if it were. alix: that is the issue that investors are worried they will not get their payments and also perhaps that it will convert