THE VALUE OF MINIBOND ? 85%-99% ?

ARE HKMA and SFC trying to hide the true value of Minibond from Hong Kong retail investors?

ARE BANKS in Hong Kong trying to rip off their clients again from the minibond buyback plan?


On 14 December 2009, the value of Australia Mahogany Notes (a minibond alike product, arranged by Lehman Aaia) ,was announced in the ASX announcement:
Minibond-like Credit-Linked Notes sold in Australia (Mahogany Notes I & II by Lehman Asia) are worth $99 and $85. The notes/series that would mature at a later stage (2016) is worth $85. The notes/series that would mature much earlier in 2010 hence it is worth $99, is worth $99.

WHEN will Hong Kong retail investors get any updates on the value of the Minibond?

The banks buyback was only 60-70% of the issued value.

Who is losing more money?
Who is making profit from the Minibond sales & Minibond buyback?
The bank or the small investor?

In the ASX announcement as of 14 December 2009, it stated that for
"Mahogany Capital Limited – A$75 million Notes Series I and A$50 million Notes Series II ", the "Structured Credit Research has estimated a value for:
AUD 75MM ANZ Floating Rate Note maturing 10 Dec 2011 (XS0208078732) of $99 as of 30 November 2009 (the ultimate Collateral for Mahogany Notes Series I),
and a value for:
AUD 50MM RBS Floating Rate Note maturing 17 Mar 2016 (XS0247983058) of $85 as of 30 November 2009 (the ultimate Collateral for Mahogany Notes Series II). (...) These valuations represent the highest valuations received since the bankruptcy of Lehman Brothers in September 2008."


[ full text of the ASX announcement on the value of Australia Mahogany Notes:
https://www.macquarie.com.au/edge/static/eclipse/Hidden/Company%20Announcements/ISSUED%20CAPITAL/2009-12/010222460.pdf ]

Australia Mahogany Notes (by Lehman Brother Asia) related information::

1. Summary Information:
It is credit-linked to 100-150 reference entities which are explained in the 2-page product summary. The interest rate (of the notes) and the principal loss are affected by the number of default events which are clearly outlined in the 2-page product summary.
同樣由雷曼亞洲一手安排的在澳洲銷售的信貸掛鈎票據 Mahogany Notes 清晰地介紹了
- 該信貸掛鈎票據之本金跟100個公司信貸掛鈎，（7個破產就會失去100％本金），
- 該票據之利息跟150個公司信貸掛鈎（破產事件跟票據利息之關係）
- 該票據所有信貸掛鈎主體之評級（AA 到 BBB- 及 低於 BBB- 之公司數目，等）和公司之業界類別等信息。
該票據明確指出其資金不是投入於任何信貸掛鈎主體（公司）。

2-page summary from the issuer: "Mahogany Notes II - a CDO defence",
http://www.mahoganycapital.com.au/mahogany/PageAttachmentServlet?PageID=4764

2. Prospectus
All the reference entities related information, the impact of default event(s) to the interest rate, the impact of default event(s) to the principal loss are clearly outlined in the prospectus.

http://www.mahoganycapital.com.au/mahogany/PageAttachmentServlet?PageID=4762

3. Related Analysis:
http://minibondvictim.blogspot.com/2009/01/austalia-mahogany-notes-prospectus.html
and
http://minibondvictim.blogspot.com/2009/01/how-was-mahogany-notes-ii-being-briefed.html