Lehman Bond, How much is it worth?

ttmd

Hi all,

Someone, (I wont tell you who and it doesnt matter anyway ) was unfortunately holding a bond in Lehman Brothers when it went under a few years ago.

An unsolicited letter offering approximately 13% on a low six figure dollar sum invested in the bond has arrived. The firm look a bit dodgy, maybe a cash for gold type outlet, they are based in New Jersey. Another letter from a New York based investment firm is also offering to talk to people about their interests.

I have searched the web and have come up with a few articles referring to the process of the bankruptcy proceedings which indicate ( I think) that the bond is worth anywhere between 16 to 27 cent on the dollar, but most probably about 21 cents.

Heres a few links


http://www.bloomberg.com/news/2011-04-25/paulson-bought-lehman-senior-bonds-for-as-little-as-9-cents-on-the-dollar.html


http://www.businessweek.com/news/2011-04-05/lehman-creditors-with-goldman-said-to-draft-competing-plan.html

We are unsure about the seniority of the of the bond, as we do not have the documentation to hand, and an unnamed Irish stockbroker are currently unable to locate it, so unfortunately I have to leave this out of the picture for this.

Our current inclination is to hold the investment until the bankruptcy proceedings are finished, but I do not have enough experience to tell if there are major downsides to this. I do not know exactly how these things trade is there a spot price for this type of instrument? ( Hopefully I will be able to class the bond in due course, but for the moment if people had info on the most common classes)

I think there are some knowlegable people of this board, and I would be very grateful if they could shine a light on how much an instrument such as this is worth.

Mr_Roger_Bongos

ttmd wrote: »

An unsolicited letter offering approximately 13% ..... The firm look a bit dodgy, .

We are unsure about the seniority of the of the bond, as we do not have the documentation to hand

Without more information as to the specifics of the bond any advice would be pure speculation. Unless someone is very familiar with the lehman bankruptcy i doubt you'll find a specific answer here.

Raskalinov is a poster here and i know he invests in distressed assets, he may be able to help but again, get more details. If the broker was charged with looking after the bond docs, tell them to find it sharpish.

strmin

I founds quotes for six Lehman bonds:
52519FAU5 - price 22.96
52519FBY6 - 23.63
52517PSC6 - 24.25
52519FCB5 - 23.72
52519FCR0 - 23.63
52517PR60 - 25.41

That is all you can get for each bond at the moment.