We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Lehman Credit Default Payout Could Set Record

Law360 (October 10, 2008, 12:00 AM EDT) -- Sellers of credit default protection on Lehman Bros. Holdings Inc. will reportedly pay out just over 91 cents on the dollar after an auction Friday to settle trades across the market related to the failed investment bank.

The recovery rate for defaults on Lehman's senior debt was set at 8.625 cents on the dollar, according to results auction administrators posted on creditfixings.com. Banks and others that sold insurance on the defaulted bonds would have to pay the remaining 91.375 cents on the dollar.

The auction could...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.