This comes via Credit Fixings.
The auction process to settle Credit Default Swap trades on Lehman Brothers bonds put the value of the debt at 9.75 cents on the dollar. That is much lower than one would have expected (12 cents on the dollar was the expected rate according to Market Beat). While this is an initial auction fixing, it is somewhat worrying. A good friend told me recently that his 80-year old mother was invested in these bonds and that she had taken large losses on her portfolio. It bears remembering that individuals — some widows and orphans like my friend’s mother — are the faceless investors behind these events.
UPDATE: The orders were finalized for 8.625 cents on the dollar (see EconomPic Data)