Friday, October 10, 2008

Will Lehman Credit Default Swaps Deliver?

Rather than an expected 12 cents on the dollar, Lehman credit holders got 9 3/4 cents. In other words, Lehman debt fell short by 91.25 cents. That's the preliminary report from CNBC. Final numbers are worse.

Credit default swap holders promised to make losers whole. Will they deliver or default? The week of October 20th will be informative.