Replies to post #36517 on Lehman Brothers Financial SA (LEHNQ)

[uhlmant]

Sadly I am no longer in the Fatherland.

This is of course a very tricky and nuanced point. I am not certain that many folks within LEH ever understood the CTS to begin with.

I don't believe the CTs have intrinsic redemption value per se. I believe the value of CTs is derived from the trust claim in the BK. I think this claim will provide CT holders an avenue to own future assets/earnings/part of new LEH, or provide some type of direct settled recovery.

I know this doesn't answer your question. Sorry

Troy

[The Godfather]

I don't believe the CTs have a stand-alone value by themselves. They are valued at what the market values them at right now :-)

But, the subordinated debentures on the other hand do have their intrinsic value and as 'owners' of the restructured Lehman, their value will be tied to the residual assets IMO.

This is why I believe that reinstating the divies (maybe at a lower %) might be the best option for the estate as the market will start valuing the CTs according to that.

The cheapest way for Lehman to get out of the CT mess but then, there is also the Dodd-Frank to consider since these have to be retired sooner than latter.

That is why I am still holding all my CTs accumulated since 2010 till now. Go big or go home!! 20% FV and I will be happily running to the bank with a lot of you folks :-)