Fixed Income Market Lehman Report Lehman Report: During the semester student will research some aspect of the Fixed – Income Market and write a brief (2 -3 page) report.
Why did Lehman Fail and was the U.S. Government right to let it fails? Company: Spanish Broadcasting System Inc. (SBSA) Lehman exposure: Lehman committed $10 million in a revolving credit pact Date of disclosure: Oct. 10 Notes: Spanish Broadcasting said Lehman failed to fund its $10 million portion of the credit pact. As a result, the company received only $15 million of $25 million draw down being used to repay an $18.5 million promissory note due Jan. 6. Company: Friedman, Billings, Ramsey Group Inc. (FBR) Lehman exposure: $250 million Fannie mortgage-backed security sold to Lehman under repurchase agreement Date of disclosure: Oct. 9 Notes: FBR expects to about $4 million in costs associated with the resolution of the repurchase agreement.