Lehman Brothers Offers New Muni Derivatives for Institutional Investors

(Bloomberg) -- Lehman Brothers Holdings Inc.
tomorrow will introduce derivatives that track the value of
benchmark five- and 10-year municipal bonds, in an effort to
provide a way for investors to protect against price swings.

The Lehman Municipal Index Swap, comprised of general
obligation bonds rated AA- or better, will also allow investors
to bet on the performance of municipal bonds relative to taxable
yields without buying tax-exempt debt. Currently, municipal
investors use the Securities Industry and Financial Markets
Association Municipal Swap Index or Thomson Financial's
Municipal Market Data index.


Read more at Bloomberg Bonds News

Bear, Lehman, Merrill, Goldman Traded as Junk, Credit-Default Swaps Show

(Bloomberg) -- On Wall Street, Bear Stearns Cos.,
Lehman Brothers Holdings Inc., Merrill Lynch & Co. and Goldman
Sachs Group Inc., are as good as junk.

Bonds of U.S. investment banks lost about $1.5 billion of
their face value this month as the risk of owning the securities
increased the most since at least October 2004, according to
Merrill indexes. Prices of credit-default swaps based on the
debt imply that their credit ratings are below investment grade,
data compiled by Moody's Investors Service show.


Read more at Bloomberg Currencies News

Stocks in U.S. Decline; Shares of D.R. Horton, Sears Retreat on Earnings

(Bloomberg) -- Builders, banks and retailers sent
the U.S. stock market tumbling for the first time in six days on
increasing evidence the housing slump is depressing earnings.

Home construction shares fell to the lowest in almost four
years after D.R. Horton Inc. said a decrease in orders will lead
to a third-quarter loss. Lehman Brothers Holdings Inc. and Bear
Stearns Cos. dropped after Standard & Poor's said mortgage
defaults may grow. Sears Holdings Corp., the biggest U.S.
department-store company, slid the most since 2003 on its
forecast profits will shrink.


Read more at Bloomberg Stocks News