Lehman ABS CorTS 2001-08 7.375% General Motors (CCYPQ)

[marayatano]

For the who PM'ed me. To summarize, CCYPQ is a Trust originating from Lehman Brothers (but NOT connected to Lehman Brothers Bankruptcy).

This Trust bought GM Senior Bonds. The specific bond is GMGM.GF / CUSIP 370442AV7. This Bond closed at $11.95 on Friday. This means that the Bond is trading at $11.95 per $1,000 bond OR .1195 cents on the dollar.

Each share of CCYPQ has a par value $25 per share. CCYPQ is trading at $1.50 (closing price of Friday). Since the GM Bond is trading at .1195 cents on the dollar, then CCYPQ shuld be trading at .1195 on the dollar.

$25 (par value of CCYPQ) x .1195 (based on GM Bond that closed at .1195 cents on the dollar) = $2.9875 (This is the price CCYPQ should be trading at since it has to match the GM Bond).

As you can see, CCYPQ is very undervalued.

Under the GM Plan, Bond Holder are supposed to 10% (Plus 15% in warrants) of the new GM.

I do not know the price per share of the new GM since I believe it is going to be a private company BUT will have an IPO to the public in the near future.

In my opinion, this is a great investment, especially since you are buying in at for example: At $1.50 per share is like buy GM bonds at .06 on the dollars. ($1.50 divided by $25 = .06 cents on the dollar WHILE GM Bonds are at .1195 cents on the dollar).

Hope that answers your questions.