Update: I think the Journal folks were typing too fast. the lower the value of the bonds, the more the insurers have to pay.
This means bigger payouts by the writers of the CDS insurance. Ouch.
The initial fixings in the auction to settle Lehman Brothers credit derivatives trades put the value of those senior bonds at 9.75 cents on the dollar, below analyst expectations, which means those who bought default protection against default on Lehman debt will recover less than expected. This is not final pricing....MORE