LONDON (Reuters) - Deutsche Bank’s capital-boosting Additional Tier I (AT1) debt issues fell on Monday on worries over future challenges Germany’s biggest lender may face in a planned overhaul.

People walk past a Deutsche Bank office in London, Britain July 8, 2019. REUTERS/Simon Dawson

Concerns centered on Deutsche Bank’s decision to lower minimum capital buffers, a pool of assets designed to absorb losses, after it launched one of the biggest overhauls of its investment bank since the 2008 financial crisis on Sunday.

The debt had earlier risen after Deutsche Bank said it will pay coupons on its bank capital debt.

“A substantial restructuring was needed to address the bank’s sluggish performance,” ING analyst Suvi Platerink Kosonen said, adding: “The measures involve substantial execution risks and lowering the capital buffers makes the bank more vulnerable to any headwinds”.

Deutsche Bank’s U.S. dollar Additional Tier 1 perpetual bond, callable in November 2021, were down 0.70 cents on the dollar at 93.51, off an earlier high of 94.41.

Two euro-denominated issues, both callable in May 2027, were also down, reversing early gains.

“I guess (the early gain) was a knee-jerk reaction on the stock being up 5% plus, but as people digest the details, then it is difficult to get AT1 support,” said Steve Hussey, head of financial institutions credit research at Alliance Bernstein.

Deutsche Bank will now target a minimum common equity tier 1(CET1) ratio of 12.5% and a leverage ratio of 4.5% by 2020 and 5% by 2022. It had a CET1 ratio of 13.7% at the end of March.

Meanwhile, the cost of insuring exposure to Deutsche Bank’s debt through 5-year credit defaults swaps (CDS) fell by 3 basis points (bps) from Friday’s close to 61 bps, data from IHS Markit showed.

Deutsche Bank CDS fell for a sixth straight session.