Recent Blog Posts
-
The Era of the Renminbi Is at Hand
Nov 20 20092:55 pm EDT -
Computer Glitch Snarls Air Traffic
Nov 19 200910:29 am EDT -
Dollar Doldrums? What Dollar Doldrums?
Nov 19 20098:48 am EDT -
American Express Makes a Revolutionary Deal
Nov 18 200912:05 pm EDT -
Calpers Puts Pressure on Private Equity Funding and Fees
Nov 18 200910:27 am EDT -
Madoff Makes Millions (for Others)
Nov 18 20096:04 am EDT -
Lazard Looks Within Its Ranks for New Chief
Nov 17 20091:44 pm EDT -
A Brutal Morning for Geithner
Nov 17 20098:02 am EDT -
GM to Start Payback
Nov 16 20095:57 am EDT -
She Rules
Nov 13 200910:48 pm EDT
Oct 10 2008 2:33pm EDT
Lehman's Leavings
The collapse of Lehman Brothers is still reverberating through the markets.
An auction of Lehman Brothers credit default swaps today went somewhat worse than feared. While banks and other sellers were hoping to get 9 to 12 cents on the dollar, the price for the contracts came at 8.625 cents, according to Markit, meaning that those who sold insurance on Lehman debt will have to pay out 91.375 percent of it to holders.
That will be a big hit to a number of banks and hedge funds. Indeed, Lehman is by far the biggest debt default in years.
And while the good news is that the auction is now over, the process itself is not, as Felix Salmon noted earlier. The settlement date is October 21.
