Dec 30 2008
Estimated Minibond Values
The Association of Banks in Hong Kong have given a estimated residual value of the Minibonds that were sold in Hong Kong. The news report on this can be found here:
Valuation of Minibond in Hong Kong (In Chinese)
Translated into English, it reads:
The Association of Banks have completed the valuation (as of last month) of the Lehman Minibonds. Minibond series 15-18 have a value of 11-14%, series 10 has a value of 52-78%, while series 31-35 has a value of 54-56%.
This valuation does not take into account the market conditions and fluctuations in December. It also does not include the risks associated with legal issues and is not a reflection of the final amount that investors will receive. The annoucement of the estimated value is more to increase transparency.
A committee of the Legislative Council will hold a special meeting tomorrow to discuss the bank buyback of the Lehman Minibond. A number of banks will be represented at this meeting.
Added:
Lehman Minibond Values Up in Air (The Standard)
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OMG.. i didn’t know there were SO MANY series of mini bong in HK…
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what is the valuation of Mini Bond Series 2?
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lioninvestor Reply:
January 2nd, 2009 at 12:33 am
Hi inthedark,
So far, no one has provided any estimate of the values of the Minibonds sold in Singapore.
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Dan Reply:
January 2nd, 2009 at 10:49 pm
Hi lioninvestor,
I invested in minibonds series 5, somewhere here I read that in HK the estimated buyback value is only 0.82% or less than 1% ! Can you help to confirm the value ? Does this value also applies to SG minibond too?
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lioninvestor Reply:
January 3rd, 2009 at 12:16 am
Hi Dan,
Where did you read that?
Anyway, what is applicable to Hong Kong is not applicable here. Every series is different and at the moment, everything is stuck anyway.
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Hi lioninvestor,
I read it somewhere in this website entitled “estimated minibond values” & also from the delphi forum:
“Series 11, tranche A, was worth the most among all the series and its price was 78.31 percent, after calculating the value of the underlying collateral. Those who bought the product for US$100 (HK$780) would get US$78.31. Remaining values of series five to nine of the minibonds were only 0.82 percent.
The pricing information no longer represents the current market value of the minibonds and the banks cannot assess how much a minibond investor may recover from the proceeds of the collateral underlying the minibonds, the association added”
Anywhere I am still waiting for the rely from HLF. It is coming to 3 mths, and they are still saying the review is in progress.
Still waiting…..
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lioninvestor Reply:
January 3rd, 2009 at 1:34 pm
Hi Dan,
I think at this point in time, all these value are meaningless as nothing can be done. They may change significantly in the future.
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lioninvestor Reply:
January 3rd, 2009 at 6:02 pm
Ok. Think you were refering to this:
http://thestandard.com.hk/news_detail.asp?we_cat=2&art_id=76367&sid=22062152&con_type=1&d_str=20081230&fc=2
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Hi lioninvestor,
Yes, I remembered reading this somewhere. I hope these values for series 5 do not apply in SG as they are nearly worthless in value. Now it seems nothing can be done, waiting for Mr. Tan KL to update on the class action as the last resort. FIs, FIDREC & MAS are not making much progress at all !
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All estimated minibong values don’t mean a sh*t now.
as long as Lehman’s receivers refuse to release the assets, the minibong cannot be liquidated and proceeds distributed to the investors.
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I did a comparison of this NOV end valuation compared to the valuation reported about 2-3 months ago (which I tabled out by series in this blog – again, only apply to HK), i.e. a trending analysis.
My general conclusion is that:
1. Valuation went down, but not that much. Roughly 10% (against 100% as the original investment) for most of the series.
2. Except for series which are based on subprime mortgages. It was reported as <50% before. Now, about 13%.
So, here is the follow-on question: does anyone know nature of the underlying assets by the SG Minibond Series? i.e. Subprime mortgages or corporate bonds?
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Hi # 5D on 07 Jan 2009 at 8:53 am
do you reckon there is any residual value in Minibond 2, if so how much (estimate)? How long would it take to be finalised?
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