Cts is like any other preferred shares with equivalent reserve of common shares. It is indeed EQUITY..
Just like any preferred, Cts value is ratable in value of common shares.
NOT TO ELABORATE, CTS ALSO OWNS THE NOL
READ THE EXCERPT FROM CTS PROSPECTUS BELOW
(The preferred securities mentioned below is the Cts itself)
——//———//———//———
General;
The declaration authorizes the regular trustees to issue both “common and preferred” securities representing undivided beneficial interests in the assets of the trust.
(Asset of the trust is obviously the subordinated debt issued by LBHI.. Claim 10-B)
——////————//——
All the common securities will be owned, directly or indirectly, by Lehman Brothers Holdings.
(Simply Lehman common stock)
—-///————-//———
The “common securities rank equally” and......
“payments will be made on the common securities on a ratable basis, with the “preferred securities.”
—-//——//—-
(Wording is a little confusing unless if you imagine that you are buying CTs).
(On IPO, You are actually buying Lehman common shares worth 25 bucks with an attached agreement as a preferred stocks...
......so to speak).
(The only difference of CTs with other preferred is that Cts was issued by the trust....
.....as I’ve mentioned many times before)
(Trust Preferred Securities)
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