Added a 5% tranche to Deutsche Bank (DB) at $28.66. Deutsche Bank is perhaps the most hated bank in the world. From a sentiment point of view, when something is most hated, it is usually the time to buy.
Based on our analysis, Deutsche Bank can easily handle a Greek sovereign default. At this price, a Greek default is more than priced in. However, if the contagion spreads and there are defaults in Portugal, Spain, Italy and Ireland, then this call will be wrong.
