Deutsche Bank AG's US distressed products group more than doubled its net profits in the first quarter, booking over $100 million in gains, largely driven by shorting a basket of software companies' debts, according to sources familiar with the matter.

This significant profit surge extends the desk's strong performance from last year, when it generated a record $200 million in a single quarter. The success highlights the desk's ability to capitalize on market dislocations within the software sector, a strategy that proved highly lucrative in the current quarter ending March 31, 2026.

The desk's robust performance underscores its role as a key profit engine for Deutsche Bank, demonstrating the effectiveness of its distressed debt strategies, particularly in the volatile software market where debt valuations have fluctuated sharply.