Bond investors in Lehman Brothers face an anxious few days wait to determine the losses incurred following the bank's weekend bankruptcy.
F&C, which holds Lehman bonds in two Fatima Luis-managed fixed income funds, says the complex nature of the bank’s demise has created a lot of speculation regarding bond losses – but the manager feels it is too soon to talk recovery values. Credit rating agencies have so far offered conflicting views on recovery levels, with figures varying from 10p to 40p in the pound. “Moodys on Monday put up a figure of around 90% and yesterday we saw totally different data come out,” F&C’s corporate affairs head Jason Hollands says. “The important thing is not to panic and take any rash action befor...
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