We don’t know enough about the commercial paper market to know what to make of a report from Reuters that Lehman offered $340 million in commercial paper and placed 75% of it as of late this morning. Is this good news? After all, it shows they can borrow. Or is Lehman scrambling for liquidity and having to restrict its borrowings to overnight money?
We report, you deride.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
I think that ladder is more likely
as anyone buying LEH equity? roll the dice, catch the falling knife, bet the farm and make fast money or does this baby go to ZERO?
the what?
@2
Zero
the ladder? really?
I award you no points, and may god have mercy on your soul
the ladder, of course.
It’s Latter….not ladder. And no it’s not more likely. It depends on the pricing of the CP? Placing 75% of $340MM is not good news though.
Is $340MM going to do anything? Isn’t that like trying to treat herpes with aloe?
lehman brothers taps — stopped reading there, seems to sum up the grand total of all leh posts today.
is anyone here from lehman? what is the internal environment like right now?
DAVID EINHORN JUST BLEW A LOAD IN ERIN CALLAN’S FACE.
its good news to some extent. unless it’s bad news.
like, is it a pitiful amount that the market will laugh at, #8 on to something?
what was the spread?
its good news to some extent. unless it’s bad news.
like, is it a pitiful amount that the market will laugh at, #8 on to something?
what was the spread?
but I think it’s good news. shows someone’s willing to trade with them.
@8 – LEH comment of the day.
I don’t know, I’ve had very good results treating herpes with aloe. None of my girlfriends seem to complain.
– Jimmy Cayne
@ 10, not from LEH, but I think it’s safe to say the “internal environment” is a bit more of it was yesterday, and the day before…
@1 FAIL
Fuck this shit. LEH, have a quick death please. There are more important things in life like mayo and shamwow.
@18: he said ‘Shamwow’
Another Lehman employee got cut…
I think 8 is warren buffet…
8 I would say that $340 million is being used to pay off whatever was maturing today. This is short term debt remember – they’re rolling it over – not a source of new financing.
Aloe is the new mayo!
Aloe is the new mayo!
@8 Nice…but is is soothing for a short time
#8 here. Not Buffett but flattered. I’m not from Omaha or New York but Denver.
This sucker is going to settle in the $1-$2 range when a pe firm snaps it up. but then again, what lucrative business do they have left to justify taking on all of its level III’s? why not let it blow up and settle on snatching the remaining real value (its employees)?
340M is dicks’s severance package. he’s getting the hell out.
@27 are the indexes worth anything?
@ 28 — worth scrolling down for.
You know what I’d like to tap?
@8 Haha! Outstanding.
ERIN BURNETT!!!!!!!!
ERIN BURNETT!!!!!!!!
I hate (love?) plastic surgery and makeup…
http://www.nypost.com/seven/07152007/business/street_sweetie_business_.htm
Commercial paper is NOT overnight money, can be a week, a month, or anything less than a year.
Commercial paper is NOT overnight money, can be a week, a month, or anything less than a year. Can’t imagine who would step in and buy it. Talk about no recourse…..
36 You are generally correct. Actually, CP can be anything less than 270 days (not a year), in order to be exempt from SEC registration. My point though in responding was that this is not permanent financing. LEH likely didn’t “raise” $340 million in the sense that they now have newly available capital. They just rolled over existing debt.
I’d tap that.
@36
Yep, your right on 270 days…..no way they floated new 340 million today. Have a hard time believing they were even able to roll ANYTHING over. Sounds like a bullshit rumor to me….When credit is tight, and balance sheets bleeding, real easy to get knocked out of CP market. Who would buy Leh paper today?
@28 the severance package for Fuld is valued at around $215MM
but clearing 75% of the 340MM issue of CP more than covers that, so he is getting the hell out
Reports are just now coming out now that Lehman had large $amounts$ of commercial paper out the night before they declared bankruptcy; so that when they declared effectibe 12:00am and their paper defaulted and buyers / holders of their paper then became bankruptcy creditors. Bits and pieces of information is now indicating that this is what kicked-off the huge “psychology jam-ups” in the commercial paper and all of other credit markets. What do you-all know about the event(s) on the day that Lehman declared and the initiation of the massive credit crunch in all credit markets? GN
Reports are just now coming out now that Lehman had large $amounts$ of commercial paper out the night before they declared bankruptcy; so that when they declared effective 12:00am and their paper defaulted and buyers / holders of their paper then became bankruptcy creditors. Bits and pieces of information is now indicating that this is what kicked-off the huge “psychology jam-ups” in the commercial paper and all of other credit markets. What do you-all know about the event(s) on the day that Lehman declared and the initiation of the massive credit crunch in all credit markets? GN
Reports are just now coming out now that Lehman had large $amounts$ of commercial paper out the night before they declared bankruptcy; so that when they declared effective 12:00am and their paper defaulted and buyers / holders of their paper then became bankruptcy creditors. Bits and pieces of information is now indicating that this is what kicked-off the huge “psychology jam-ups” in the commercial paper and all of other credit markets. What do you-all know about the event(s) on the day that Lehman declared and the initiation of the massive credit crunch in all credit markets? GN