The demise of Lehman Brothers has triggered fresh concerns about counterparty risk, creating a wave of novations and forcing dealers to think harder about the possibility of another major derivatives counterparty defaulting. Mark Pengelly reports
An auction yesterday established a final settlement price of 57% for Washington Mutual bonds, leaving sellers of credit default swaps (CDS) with higher-than-expected settlement payments as they close out contracts referencing the former US bank.
Daily news headlines
A final value of 8.625% was set on the bonds of Lehman Brothers today, in an auction intended to cash-settle credit default swap (CDS) trades linked to the toppled dealer.
Following Lehman Brothers’ filing for Chapter 11 bankruptcy on September 15, the bank's failure has hit its employees hard, with further redundancies announced earlier this week.
The collapse of Lehman Brothers has shocked investors in structured products. Previously immune to the financial crisis in the immediate markets that surround them, those that bought products from the defunct US investment bank are now contemplating major...
Losses & Lawsuits
Losses & Lawsuits
The bankruptcy of Lehman Brothers, coming on the back of the conservatorship of Fannie Mae and Freddie Mac, sent market participants rushing to compute their exposures and replace affected hedges. How did the market bear up? By Peter Madigan and Nick...
Following its filing for bankruptcy last weekend, the carving up of Lehman Brothers has continued with Japanese bank Nomura Holdings agreeing to acquire the Wall Street firm’s European and Asia-Pacific franchises.
Barclays Capital looks set to acquire Lehman Brothers’ suite of indexes, widely used as a benchmark in the fixed-income market.