By Eyk Henning 

FRANKFURT-- Deutsche Bank AG has ended trading in investment-grade and high-yield credit default swaps in U.S. and European companies, a spokeswoman for the bank said Monday.

The lender will still trade credit protection on indexes as well as on distressed and emerging markets debt, the spokeswoman said.

The move underscores the challenges the industry faces in the wake of tougher regulations for credit protection.

Germany's largest bank is still investing in other areas of its U.S. and European trading operations. Last week, it added Allen Blankenship from Citigroup Inc. and Michaela Galluzzo from Royal Bank of Scotland PLC to cover industrials and consumer clients respectively.

Write to Eyk Henning at eyk.henning@wsj.com

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