Minibond blow-ups place scrutiny on derivatives dealers

Lehman Brothers minibond issues more secure than those of some other 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

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