62. Private Debt, Lehman and Livedoor

62. Private Debt, Lehman and Livedoor

In February 2005, while the Convertible Bond market languished in a vicious volatility crunch, Lehman Brothers in Tokyo stunned the market, privately financing a Moving Strike Convertible Bond for Livedoor. The Yen 80bn deal, worth approximately US$750m, purportedly made Lehman Brothers US$140m. But at what cost?

Livedoor was later found to be an Enron style fraud, and the flamboyant Chief Executive Takafumie Horie faced jail.

Using the Livedoor MSCB as a case study, Nic examines some of the risks and pitfalls of Private debt financing, and what Auditors, Compliance, Investigators and Litigators should be on the lookout for.

#privatedebt #deathspiral #Japan

#finance

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63. Radiant World: What Are the Lessons for Lenders?

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61. Lorna Hajdini and Chirayu Rana, Investigation over Speculation

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On May 1st 2026 the "Internet blew up!". Cannons, Fish heads, the intoxicating mix of sex, money and power. A now retracted court filing latched on to by the Daily Mail drew attention to a complex peo...

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60. Embedded AI - the Iceberg Risk for Sales

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The Titanic was promoted as unsinkable, equipped with state-of-the-art safety features. But on April 15, 1912, it struck an iceberg, leading to one of the deadliest maritime disasters. This narrative ...

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59. AI Sycophancy - Trading's Emerging Risk

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58. Cornering Markets - Silver, Gold and Volkswagen

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In the world of finance, few attempts to corner a market are as infamous as that of the Hunt brothers' silver squeeze in the late 1970s. With the backdrop of inflation concerns and a shaky economy, th...

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57. Vestia - Derivatives, Intermediaries, and the Liquidity Death Spiral

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Nic and Damian examine the near-collapse ofVestia.At its height:Over €20 billion in derivatives exposureMassive collateral callsA liquidity crisisCriminal convictionsExecutive resignationParliamentary...

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