Structured Products, 13 Nov 2008, Matt Cameron
HSBC Institutional Trust Services (Singapore), the trustee for the Lehman Minibond programme, has terminated the swaps in the product for series 1 to 8 of the programme, which removes the risk of credit events in the underlying securities and helps to preserve the value of the underlying collateral. Series 9 and 10 are not affected as the underlying securities for these notes are corporate bonds and have no swaps.
The trustee has informed the Monetary Authority of Singapore (MAS) that it has not ruled out any restructuring proposals received from interested parties. To provide noteholders with an independent opinion on the options that best serve their interests, the MAS has appointed Deloitte & Touche Corporate Finance (DTCF) as an independent financial adviser on the Lehman Minibond notes programme. Payment of any resulting liabilities amounts from the termination would be subject to the terms of the underlying notes.
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