This is Argyn's blog. I comment on topics of my interests such as software, math, finance, and music. Also, I write about local events in Northern Virginia, USA and all things related to Kazakhstan

Thursday, September 11, 2008

Lehman's not doing well

Lehman One-Year Default Swaps Trading at 11% Upfront, CMA Says
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?

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