Lehman Brothers Holdings Inc. (fka LEHMQ)

[coach tequila]

Before the common gets paid trust and preferreds should get paid first and more.

That is the current paradox...how can the common be trading higher than the preferreds? I think it is a liquidity factor. The common trades far more actively.

But that is how they moved earlier in the year. Common first then preferreds caught up. If you can move UP the food chain risk lessens...however, leverage is reduced.

My take is that Preferred holders are in it until there is enough information to make a decision on A/L, so they don't care about selling. That is why you see the preferreds move up on heavy volume on the ask side and then the bid gets whacked with 500-1000 shares to hide the accumulation.

Coach T