(Bloomberg) -- As Deutsche Bank AG CEO John Cryan explores alternatives to paying its staff bonuses in cash, two of the lender’s creditors have an idea: pay them with a risky type of bond that would be first to take losses if the bank runs into trouble.

Europe’s biggest investment bank is weighing compensation alternatives as it seeks to boost capital buffers and shore up investor confidence, people familiar with the matter said on Tuesday. Money managers at Pimco and Algebris Investments think it should pay with so-called additional Tier 1 bonds, that can skip interest payments and be written off or converted into equity if a bank burns through financial reserves.

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