Municipal Bond Forum
Lehman Brothers
Q
Do you think Lehman Brothers will survive its present problems? What is its responsibility to the bondholders in case of a sale of the company? Will the bondholders eventually be made whole? Is there any protection in case of a default by Lehman?
A
James A. Klotz responds:
We really can’t comment on Lehman’s financial condition. We are as much in the dark as the rest of the financial community. We believe that a sale of Lehman would have a supportive effect on the Main Street bonds (S&P has commented that a sale to a strong institution might even result in an upgrade). Naturally, we would welcome this outcome. A bankruptcy filing by Lehman would certainly have a negative impact on these bonds, but we really don’t know to what extent.
We will try to keep our investors informed as events unfold.
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This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.