THERE is encouraging news for investors who bought Minibonds, a structured product linked to bankrupt US investment bank Lehman Brothers - there is a slim chance they may get some of their money back.

This is despite the confirmation yesterday that Lehman had, as expected, defaulted on Series 5 and 6 of the Minibond programme now that the 15-day grace period is over. Yesterday, HSBC Institutional Trust Services, trustee of the Minibond programme, informed the Monetary Authority of Singapore (MAS) of the default.

In a statement released late last night, MAS said that as requested by some investors, the trustee is now considering proposals for a new swap counterparty to replace Lehman for all series of the Minibond programme.

For more The Straits Times stories, click here.