Lehman investment opportunity note lion

What is Lehman investment opportunity note – lion’

A Lehman investment opportunity note – lion was the type of zero coupon Treasury bonds issued by the U.S. government through Lehman brothers brokerage since the mid-1980s to the collapse of Lehman Brothers in 2008. Lehman investment opportunity notes (lions) was created as a set of “cat” investment brokerage house as a new kind securities, which separated the principal amount and interest and was issued at a discount from face value. The lions were zero coupon bonds, which means that they did not make any interest payments to bondholders. Instead, investors have made money over the face value, they received back at maturity bonds was more than the discount price paid for the bond.

Breaking down the ‘Lehman investment opportunity note – lion’

A Lehman investment opportunity note – lion was just the U.S. Treasury bonds issued through brokerage Lehman brothers. It was one of the new type of bond that does not combine the principal amount and interest, because he was not paying any interest, but instead was sold at a discount, and then paid the nominal value when paid. This zero-coupon bonds were offered in the framework of Lehman brothers as a lion, but offered through other brokerage houses under different names. The brokerage house held the actual Treasury bonds in escrow, took interest payments and used them to separate bonds and issued new bonds with a zero coupon for the investor. It was called coupon Stripping. Because these Treasury bonds finish, they were a no-risk investment.

The lion was quite successful investment instrument that the U.S. Treasury has published its own version, separate trading of registered interest and principal securities (strips) in 1986. The lions continued to trade in the secondary market and remain popular due to their lack of risk.

During the financial crash of 2008, “Lehman brothers” filed for Chapter 11 bankruptcy.


The 1980s saw the growth reduction of financial instruments and zero-coupon bonds have taken this trend to the extreme. Between 1982 and 1986, the Lions were released Lehman brothers, Tiger (Treasury investment growth receipts) were issued by Merrill Lynch and cats (certificates of Accrual on government securities) were issued by the company “Salomon Brazers”. Together, these were nicknamed cats because they all had the names of the members of the cat family. In 1986, the US government introduced its direct version zero-coupon bonds called strips. It’s actually provided in the previous special issues obsolete, although they continue to trade in the secondary market to the company “Salomon Brazers” was included in Citigroup in 2003 and “Lehman brothers” filed for Chapter 11 bankruptcy during the crash of 2008 and ceased to exist.

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