Lehman Preferred Series "J" Preferred (fka LEHJQ)

[coach tequila]

IMO the difference between the C/Ts and Preferreds is if the A/L ratio stays where it is and never closes the GAP...then the underlying debt held in the Trust will protect the C/T holders.

If the Gap closes between A/L to = or better thru increase in A or decrease in L, or both, and/or legal settlements and victories then the distance between C/Ts and Preferreds becomes only $1.2B.

The key is to balance the risk reward between what is known as of 6/30/2009 balance sheet and the evolution of assets/liabilities since and the leverage preferreds can offer in price over risk.

Just my thoughts on your conversation between Brikk and Viva.