By Abigail Moses
Sept. 11 (Bloomberg) -- Contracts protecting $10 million of Lehman debt for one year cost 11 percent upfront and 5 percent a year, according to CMA prices at 8:50 a.m. in New York. That's up from 1,200 basis points at the close of trading yesterday. The price means it costs $1.1 million in advance and $500,000 a year to protect the bonds compared with $1.2 million a year yesterday.
Upfront fees 11%?! This is quite hilarious. I bet everyone's selling off their bonds. Their stock's at ~$4. Shall we look for another eventful weekend?