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Commentary

Lehman's bonds unbonded from the "guarantee"

Lehman’s “capital guaranteed” structured notes are likely to yield only pennies on the dollar:

A brochure pitching $1.84 million of notes sold by Lehman Brothers Holdings Inc. in August, a month before the firm filed for bankruptcy, promised “100 percent principal protection.”

Some of Lehman’s structured notes traded last week in the secondary market, mtn-i said in a Sept. 23 report. “Dealers quoted a trading range between 10 cents and 55 cents on the dollar” for the notes, according to the report.

If you can’t trust the word “guarantee” anymore, what can you trust?