Posts Tagged ‘minibonds’

Tracking the Minibond Saga

Tuesday, November 11th, 2008

Work in Progress …

July 31, 2007
Do you really understand structured products?
Larry Haverkamp (Doc Money) analyzes Pinnacle Notes, and doesn’t encourage it.

Sep 15, 2008
What will happen to my Lehman Minibond?
There are a few possible scenarios:
1) There is no bailout and Lehman Brothers goes under
2) Lehman gets taken over by another party which assumes their Minibond Obligations
3) Lehman gets taken over by another party which does not assume their Minibond Obligations

Sep 18, 2008, The Straits Times
DBS High Notes investors at risk
Bank warns they may lose entire stake in Lehman-linked product
By Francis Chan

SOME local investors of a product linked to bankrupt investment giant Lehman Brothers have received late-night phone calls from DBS Bank warning them that their entire stake may be wiped out. The investors have their cash in a product called DBS High Notes 5 that the bank offered wealthier clients last year. It came with a promised annual return of about 5 per cent.

But Lehman’s collapse on Monday means the product will be unwound and investors may only get a portion of their investment back – or none at all.

Lehman Brothers could not be rescued in time, and thus had to declare for bankruptcy, sparking off a credit event.

Sep 16, 2008
Comments by MAS Spokesperson on Lehman Brothers

Sep 17, 2008
Comments by MAS Spokesperson on Lehman Brothers Minibond Programme

Sep 19, 2008
Minibonds Update
Many people have been asking why their Minibond capital is affected by the bankruptcy of Lehman Brothers when it is not one of the reference entities. I think a picture would explain this relationship very clearly.
The Sound of Silence – Is our PM competent?
PM Lee takes the effort to mention “clearing tables and returning food trays” during his NDP Speech, yet remains silent on effects as big as Mas Selamat escaping, and now, thousands of investors losing millions.
Putting it in another way, by the sound of (PM’s) silence (on national crises), we know we have overpaid an incompetent leader to be at the top.


Creative Journalism: “Banks sound” or “Life Savings Gone?”

Thursday, October 16th, 2008

I like today’s Straits Times front page a lot. Somebody at ST is probably pissed about how the PAP is saying one thing about the banks: “Banks sound, system working well says Tharman”, while thousands of retirees might lose all of their life-savings due to possible mis-selling of minibond products by these same banks: $100,000 Life Savings GONE.

If you want to say something, but can’t say it outright, this is one creative way of doing so. Or maybe it wasn’t intended. Who knows.