Most Lehman Brothers minibonds were still worth something, Financial Secretary John Tsang Chun-wah said on Wednesday.
“After initial estimations, we estimate most Lehman Brothers-related products still have value,” he said.
His comments follow an announcement on Tuesday by DBS, who said it could only provide a monetary value for two series of structured notes linked to Lehman Brothers. DBS said many investors would get nothing back.
DBS said earlier this month it would calculate the value of structured retail notes, which were issued by Constellation Investment, a special-purpose vehicle of the banks.
The notes are linked to Lehman Brothers and other companies, such as DBS, Hutchison Whampoa (SEHK: 0013), Swire Pacific (SEHK: 0019), Sun Hung Kai Properties (SEHK: 0016), Goldman Sachs Group and Morgan Stanley.
Mr Tsang said the government hoped the bank could buy back minibonds from investors as soon as possible. Any delay might affect the collaterals’ values during the current economic crisis.
Read rest of article here:
http://wayangparty.com/2008/10/29/most-lehman-minibonds-still-have-value/
“After initial estimations, we estimate most Lehman Brothers-related products still have value,” he said.
His comments follow an announcement on Tuesday by DBS, who said it could only provide a monetary value for two series of structured notes linked to Lehman Brothers. DBS said many investors would get nothing back.
DBS said earlier this month it would calculate the value of structured retail notes, which were issued by Constellation Investment, a special-purpose vehicle of the banks.
The notes are linked to Lehman Brothers and other companies, such as DBS, Hutchison Whampoa (SEHK: 0013), Swire Pacific (SEHK: 0019), Sun Hung Kai Properties (SEHK: 0016), Goldman Sachs Group and Morgan Stanley.
Mr Tsang said the government hoped the bank could buy back minibonds from investors as soon as possible. Any delay might affect the collaterals’ values during the current economic crisis.
Read rest of article here:
http://wayangparty.com/2008/10/29/most-lehman-minibonds-still-have-value/
