Deutsche Bank enrages bond investors, impact muted

* Investors in bank bonds are those unhappy with Deutsche

* Deutsche has no need for subordinated issuance for years

* No sign of significant effect on trading business

By Jane Baird

LONDON, July 27 (Reuters) - Investors in bank bonds say they are angry at Deutsche Bank months after it sent the subordinated market into a tailspin, but their lingering wrath is likely to have little impact on its trading business or its funding.

Germany's biggest bank (DBKGn.DE), due to publish second-quarter results on Tuesday [ID:nLN103657], shocked the market in December by not exercising an option to redeem a Lower Tier 2 bond at the first call date, causing subordinated bank bonds to plummet.

More than a half-dozen managers of investment-grade corporate debt funds told Reuters they continued to resent the bank. Some said it broke an unwritten rule that subordinated bonds would be redeemed at the first call date.

"Deutsche Bank probably underestimated the vehemence," said one fund manager, who spoke on condition of anonymity.