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Lehman Brothers is not listed as a reference entity in the Minibond Series. How does its bankruptcy lead to an early redemption of the Notes?

April 26, 2017Bankruptcy Brothers early entity lead lehman minibond Reference SERIES

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Lehman Brothers is not listed as a reference entity in the Minibond Series. How does its bankruptcy lead to an early redemption of the Notes?

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A1: As stated in the Base Prospectuses and Pricing Statement of the Minibond Series, Lehman Brothers Holdings Inc. is the Swap Guarantor for the Notes, Lehman Brothers Special Financing Inc. is the Swap Counterparty. The failure of both Lehman Brothers Special Financing Inc. and Lehman Brothers Holdings Inc. to honour the swap agreement with the Issuer (Minibond Limited) may possibly result in the termination of all swap arrangements. This termination will lead to the unwinding of the Notes and early redemption.