Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
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?

Like our content? Join Capitalmind Premium.

  • Equity, fixed income, macro and personal finance research
  • Model equity and fixed-income portfolios
  • Exclusive apps, tutorials, and member community
Subscribe Now Or start with a free-trial