<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Reason for hope on minibonds?
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->There is likely to be good news for investors of Minibonds: A bank based in Hong Kong has expressed a willingness to replace Lehman as the swap counterparty for all series of the Minibond programme here.
Mr Tan Kin Lian, former chief executive officer of insurer NTUC Income, shared the news with about 600 investors at Speakers' Corner yesterday.
Speaking at his second rally at Hong Lim Park, he said if the Minibond assets 'are sold or liquidated now, the price will be very bad and very, very low; so all of you will get very little'.
'But if another manager comes in and says, 'Let's hold on for another two or three years', maybe the price will be better.'
Lehman's role as the swap counterparty of Minibonds meant that it was the manager and possibly the guarantor of assets under the programme.
Mr Tan said although recent statements from the Monetary Authority of Singapore (MAS) and HSBC Trustee, the trustee of Minibonds, have not turned up any names, he knows of at least one.
'I know there is a bank in Hong Kong that approached me,' he said. 'They told me: 'Mr Tan, we are interested to find out more facts and whether we can take over as the manager (of Minibonds).' So maybe there is some hope that maybe one, two or three might be interested, then your loss will be minimised.'
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Ass Loon: Why dun they approach me? I'm PeeAm leh!
HK Bank: U look like one meh? *hee*hee*
Ass Loon: Diu!
Despite the news, Mr Tan said that he still hopes that banks and financial institutions based in Singapore will come forward to take on the role.
Last Friday, MAS managing director Heng Swee Keat said the central bank expects HSBC Trustee to inform investors if they have found a new swap counterparty to take over the role of Lehman by the end of this week.
Francis Chan
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->There is likely to be good news for investors of Minibonds: A bank based in Hong Kong has expressed a willingness to replace Lehman as the swap counterparty for all series of the Minibond programme here.
Mr Tan Kin Lian, former chief executive officer of insurer NTUC Income, shared the news with about 600 investors at Speakers' Corner yesterday.
Speaking at his second rally at Hong Lim Park, he said if the Minibond assets 'are sold or liquidated now, the price will be very bad and very, very low; so all of you will get very little'.
'But if another manager comes in and says, 'Let's hold on for another two or three years', maybe the price will be better.'
Lehman's role as the swap counterparty of Minibonds meant that it was the manager and possibly the guarantor of assets under the programme.
Mr Tan said although recent statements from the Monetary Authority of Singapore (MAS) and HSBC Trustee, the trustee of Minibonds, have not turned up any names, he knows of at least one.
'I know there is a bank in Hong Kong that approached me,' he said. 'They told me: 'Mr Tan, we are interested to find out more facts and whether we can take over as the manager (of Minibonds).' So maybe there is some hope that maybe one, two or three might be interested, then your loss will be minimised.'
=>
Ass Loon: Why dun they approach me? I'm PeeAm leh!
HK Bank: U look like one meh? *hee*hee*
Ass Loon: Diu!
Despite the news, Mr Tan said that he still hopes that banks and financial institutions based in Singapore will come forward to take on the role.
Last Friday, MAS managing director Heng Swee Keat said the central bank expects HSBC Trustee to inform investors if they have found a new swap counterparty to take over the role of Lehman by the end of this week.
Francis Chan
