[I-bank focus] New Lehman deal good for investors & banks (14:16)
(ET Net News Agency, 28 March 2011) Credit Suisse noted that the 16 distributing banks of Lehman minibonds announced over the weekend that the receiver (PwC) has reached an agreement with Lehman for the significant recoveries of the values of the minibond? underlying collaterals.
The expected recovery rate is 70-93%, with HK banks separately having offered to increase the recovery rates to 85-97%.
The research house thinks this is positive for both investors as well as the distributing banks. For investors, they are able to recoup additional recoveries since thesettlement in July 2009. For banks, the collateral value recovery should enable them to write back partially Lehman-related provisions. (KL)
