So the rumours have finally come to fruition with NDFA Limited and DRL, both distributors of Lehman backed Structured Products have filed for administration, neither of which were wholly unexpected.
According to Grant Thornton both companies, which were linked by common ownership, made the decision in view of "large potential contingent liabilities". Data from Structured Retail Products shows DRL, a relative newcomer to the structured products scene, which distributed products issued by third parties, sold an estimated £150m of Lehman-issued products, while NDFA's contribution was a more modest £23m. Given that the combined totals represent a mere 1.5% of the c£12bn of Structured Products sold in 2009 so far, it is important to keep this issue in perspective. Admittedly, if you are one...
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