the hedge, page-6

I don't think there's any doubt that the hedge is dead in the current environment....the hedge was conditional upon Lehmann Bros remaining viable and solvent....loss of solvency translates to loss of hedge obligation...

The vexxing issue is what obligation would remain if Lehmann Bros ever came out of bankruptcy, be it in 6 months,6 years, or 6 decades time, and how it would be interpreted by US courts....Now the probability of this is absolutely minute, but it's not zero...

And that's why NGF's management will reach some kind of a settlement. Yes, the hedge is dead, but we've just got a bit more in funeral costs to cough up than expected....

Clozapine