Understanding Lehman Abs Corporation's Financial Situation

Lehman ABS Corporation's financial situation was a complex and multifaceted issue. The company's assets were valued at approximately $1.2 billion, with a significant portion of those assets being mortgage-backed securities.

The company's financial woes were exacerbated by a decline in the value of these mortgage-backed securities, which plummeted in value due to the housing market collapse. This led to a sharp decrease in the company's assets, causing significant financial strain.

Lehman ABS Corporation's financial situation was further complicated by its reliance on short-term funding, which was not sufficient to cover its long-term obligations. This created a liquidity crisis, making it difficult for the company to meet its financial obligations.

Here are the key statistics for Lehman ABS Corporation's 3.50% Adjustable Corp Backed Tr Certs:

The certificates were issued with a fixed interest rate of 3.50% and an adjustable rate that was tied to a benchmark rate.

Lehman ABS Corporation issued a total of $100 million in these certificates, making them a significant investment for the company.

These certificates were backed by a pool of corporate loans, providing a steady income stream for investors.

The certificates were issued in denominations of $1,000 and $100,000, making them accessible to a wide range of investors.

The term of the certificates was 5 years, after which the principal amount would be repaid to investors.

The certificates were rated AAA by the rating agencies, indicating a high level of creditworthiness and low risk to investors.

Lehman ABS Corporation was a significant player in the mortgage-backed securities market, issuing over $70 billion in securities between 2005 and 2007.

The company's focus on subprime mortgage-backed securities led to a large portion of its portfolio being comprised of these high-risk investments.

In 2007, Lehman ABS Corporation's assets were valued at $2.1 billion, with a significant portion of those assets being in the form of mortgage-backed securities.

The company's financial struggles were exacerbated by the decline in housing prices and the subsequent increase in defaults on subprime mortgages.

Lehman ABS Corporation's bankruptcy filing in 2008 was a major contributor to the financial crisis of that year.