Lehman Brothers Bankruptcy and Corporate Bond Risk

Don't buy bonds. Because inflation is still likely to rise!

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Regarding the reasons for the bankruptcy of Lehman Brothers: Dear relatives, the reasons for the bankruptcy of Lehman Brothers are as follows: 1. The important reason is CDO**, which caused Lehman Brothers to eventually produce a $15 billion loophole.

In a sense, deep involvement in the synthetic CDOs (Secured Debt Obligations) and CDS (Credit Default Swaps) markets may well have been one of the direct causes of Lehman's collapse. 2. No one has helped with other large enterprises. On September 15, 2008, Lehman Brothers, the fourth largest investment bank in the United States, finally gave up its armor and filed for bankruptcy protection amid the intensification of the crisis in the subprime mortgage market (subprime mortgage crisis).

Reasons for the bankruptcy of Lehman Brothers.

Hello dear, glad for your question oh <>

Regarding the reasons for the bankruptcy of Lehman Brothers: Dear relatives, the reasons for the bankruptcy of Lehman Brothers are as follows: 1. The important reason is CDO**, which caused Lehman Brothers to eventually produce a $15 billion loophole.

In a sense, deep involvement in the synthetic CDOs (Secured Debt Obligations) and CDS (Credit Default Swaps) markets may well have been one of the direct causes of Lehman's collapse. 2. No one has helped with other large enterprises. On September 15, 2008, Lehman Brothers, the fourth largest investment bank in the United States, finally gave up its armor and filed for bankruptcy protection amid the intensification of the crisis in the subprime mortgage market (subprime mortgage crisis).

Lehman Brothers Holdings, one of the four largest investment banks in the United States. Lehman Brothers, Inc. has been a full-service, diversified investment bank serving the financial needs of corporations, institutions, and investors around the world for over 158 years.

A case study of the Bank of East Asia crisis.

Dear, after the Bank of East Asia crisis was "stepping on the thunder" of Minsheng Trust, investors who were unable to collect their money and had no way to redeem their money pointed the finger at the distribution bank. The Bank of East Asia (BEA) was affected. <>

First, the bankruptcy of Lehman Brothers has caused a deterioration in China's import and export environment. This is because the reduction in consumption in the United States will inevitably lead to a decrease in China's exports, which in turn will also lead to an increase in the cost of domestic imports. Second, the bankruptcy of Lehman Brothers is a continuation of the subprime debt crisis in the United States, which has brought considerable losses and shocks to financial institutions, and the five major investment banks on Wall Street have strong investment and research teams, assets exceeding hundreds of billions of dollars, and information resources are also extremely rich, and such large investment banks have also collapsed, which shows the seriousness of the crisis.

This will inevitably have an impact on the Chinese market, which is mainly manifested in the market's confidence in the market, and the bankruptcy of institutions with major problems in the United States has cast a shadow on the psychology of Chinese investors. Finally, the bankruptcy of Lehman Brothers caused direct losses to China's domestic financial institutions. Facts have proved that the day after the news of Lehman Brothers' bankruptcy came, it was the end of the Mid-Autumn Festival three-day holiday opening of A-shares, and the banking sector in Shanghai and Shenzhen was the first of the day, and its performance could only be described as "miserable", among them, Industrial and Commercial Bank of China (,) fell, China Construction Bank (,,) fell, and Bank of China fell.

Under the vertical blow of many negative news, bank stocks in Shanghai and Shenzhen fell sharply throughout the day, and as many as 8 bank stocks fell to the limit. According to the latest information disclosed yesterday, China Merchants Bank (,, bar), which fell on the 16th, held a total of $70 million in bond exposure issued by Lei Bend Chenman Brothers as of yesterday, including $60 million in senior bonds and $10 million in subordinated bonds, and the company has not yet made impairment provisions for the above bonds.

The bankruptcy of Lehman Brothers was mainly affected by the subprime mortgage crisis. The most fundamental cause of the subprime mortgage problem and the payment crisis is the decline in the solvency of subprime mortgage recipients due to U.S. housing prices**. Subprime mortgage bonds, as a subordinated mortgage attached to the subprime mortgage loan, have a cash outflow problem for debt servicing, and it is inevitable that there will be problems with this kind of **.

With steep home prices** and low interest rates, lenders and borrowers are becoming less risk-aware, and U.S. subprime lending is growing rapidly. At the same time, the proportion of floating-rate mortgages and various preferential loans is increasing, and various high-risk loan instruments are growing rapidly.

In addition, Lehman Brothers has its own reasons. First, they get into an unfamiliar business, growing too fast and the business too concentrated. However, when the market crashes, such a large systemic risk will inevitably have a huge negative impact.

Secondly, another reason is that the capital is too small and the leverage ratio is too high.

Lehman Brothers was the fourth-largest investment bank in the United States at the time. At the time, Lehman Brothers was the world's top investment bank and a significant underwriter of U.S. residential mortgage bonds and commercial real estate bonds.

In addition, Lehman Brothers, with a history of 158 years, is the fourth largest investment bank on Wah Leung Shul Street. In 2007, Lehman ranked 132nd in the world's top 500.

For such a large company to go bankrupt, some corporate investors should learn the lesson, so it is important to have a strategic plan for the business. Any omission in strategic planning can cause unexpected difficulties for businesses.