Minibond blow-ups place scrutiny on derivatives dealers



Derivatives dealers are likely to face further scrutiny when offering derivatives products to retail investors in Hong Kong and Singapore following the blow-up of several 'minibond' products - essentially first-to-default credit-linked notes (CLNs) backed by collateral comprising synthetic collateralised debt obligations (CDO) - after the collapse of Lehman Brothers in September.

But a number of investors in Lehman Brothers' minibond programmes will be better off than investors of minibonds issue

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