if barclays buys,though—bonds are ok?

Barclays is paying 2 billion for a unit of Lehman… I didn’t see anything saying they were taking on Lehman debt.  I think the best possible scenario is that the 2 billion goes toward paying off creditors which I imagine is the case. And if your wondering, 2 Billion is just a drop of water in a 5 gallon bucket.

not sure…looks like if barclays buys lbcs{lehman brothers commodity services/the commodity arm}then bonds are ok. But Barclays is obviously cherry picking…also cannot find any info on lbcs and it is not  rated…the bonds themselves are B3/CCC- currently Moody/S&P}so cant say…as bond guy said …all we can really do is PRAY!!! …any else have any ideas?

from WSJ: “In a twist, Lehman’s much-lamented Chapter 11 bankruptcy filing may have increased the chances that the capital markets business would be salvaged in a sale, according to a person close to the deal”

Spiff,
Of course you are right.  Also, as you know, the subs are separate accounts and not company assets.  I know all the blah blah about riders etc. but the annuity is not like owning a leh bond or aig etc. etc.  Fluctuation or loss is not the same thing as Zero or bankrupt.  It sucks if accounts are down but not nearly as much as accounts (read individual securities) at ZERO.

I came across a source that is buying LEH securities in private transactions at a discount. contact me if you want more information. Thanks