Friday, October 10, 2008

Lehman Settles CDSs for 8.625 Cents on the Dollar

From the Journal...
"The recovery rate on the bankrupt firm's senior debt was fixed at 8.625 cents on the dollar, just below the 9.75 cents published in the first estimate Friday. That means the sellers of insurance on these defaulted bonds are on the hook for the remaining 91.375 cents. That's well above the approximate 88 cents envisaged earlier this week, when increased demand for paper to present in return for compensation inflated the market price."
This isn't making big waves in the financial media yet, despite the fact that everyone in-the-know was well cued up for this. That's an unexpected good sign.