Lehman Brothers Financial SA (LEHNQ)

[Joe Stocks]

>>didnt put in the hard work to buy LBIE debt when you knew it would reach a 100% recovery. <<

I never said I knew LBIE would make a 100% recovery. I said it was well known that LBIE was in better shape than LBHI and that is why LBHI wanted them included in the US BK.

I bet you have never bought bonds. Not so easy buying bonds for something like Lehman in BK. There is hundreds of Lehman bonds. You pretty much need to make sure you are buying the senior unsub, and if they have activity. And when you call a bond broker you need to have the cusips you want to bid on. Then the broker has to go out and see if anyone is offering that bond. LBIE bonds probably traded on a foreign exchange. And more than likely with not as much discount, meaning less upside. I had no interest in pursuing as hard enough weeding through all the LBHI stuff which I figured would have better risk/reward profile. I actually was disappointed in my 100% return. I thought they would do better but got out with that gain as I knew it would be a long and drawn out affair.

Just because LBIE had a 100% recovery doesn't mean they would have been more profitable. Depends on your entry. I doubt I would have done better with LBIE bonds. Actually my annulaized return I am sure would have been less.