Financial Times FT.com

Trading set to surge in Lehman claims

By Aline van Duyn in New York

Published: September 25 2008 21:30 | Last updated: September 25 2008 21:30

The bankruptcy of Lehman Brothers could spur trading in a new asset class: claims from creditors owed anything from forcibly unwound derivatives transactions to unpaid catering bills.

In recent decades, trading of distressed debt has become a well-developed market, with investors making or losing fortunes by betting on how much bondholders will get repaid once a company goes bankrupt.

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