Lehman's debt protection costs decline.
Global Banking News-15 July 2008-Lehman's debt protection costs decline(C)2008 ENPublishing - http://www.enpublishing.co.ukGlobal Banking News - 15 July 2008(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
The cost of protecting debt of Lehman Brothers (NYSE: LEH)) against default has dropped as a US government plan to bolster major US mortgage finance companies extended support to the whole financial sector, Reuters has reported.
According to Phoenix Partners Group, a leading interdealer broker in the credit derivatives market, the cost of protecting Lehman's debt with credit default swaps for five years declined by 23 basis points to 340 basis points, or USD340,000 a year to protect USD10m of debt, the report said.
Meanwhile, the Wall Street Journal said in a separate report that Lehman Brothers executives were looking at a strategic alliance with a partner, a form of share buyback or an asset sale.
[Editorial queries for this story should be sent to gbn@enpublishing.co.uk]
((Distributed via M2 Communications Ltd - http://www.m2.com))
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| Publication: | Global Banking News (GBN) |
|---|---|
| Date: | Jul 15, 2008 |
| Words: | 172 |
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