Case Study-AW207

Case Study-AW207 Online Services


Source: Capital Markets Coursepack


The case of “Lehman Brothers and the Securitization of American Express Charge-Card Receivables” presents complex issues of corporate funding strategy through the use of the capital markets. In the period under discussion American Express was expanding its charge card business and establishing new approaches to the financing of the business. As a major financial services company American Express depended on the capital markets for its most fundamental raw material – inexpensive money – to support its needs for liquidity and profitability.

The case examines the process of determination of the best alternatives and provides a perspective of the interplay of corporate and market processes. As another major theme the case illuminates the interplay of corporate/investment banker relationships. In this situation this relationship is especially interesting because of the affiliated relationship of the investment bank, Lehman Brothers, and the corporate client, American Express Travel Related Services (TRS). The case reviews the efforts to deal with difficult choices and the alternatives available in the capital markets. It illuminates a number of issues in the process of corporate access to the capital markets and in the responsibilities of an investment-banking advisor in facilitating this access.


The case focuses on three primary participants

1. The Company – American Express Travel Related Services (TRS)
2. Affiliated Investment Bank – Lehman Brothers
3. The Rating Agencies

Three aspects in the situation are highlighted

1. Intracorporate relationship: Lehman and TRS
2. The rating process
3. Marketing and pricing


Write a report up to 8 pages in length. Please follow the instructions and make sure that you answer all the questions in the expectations.

You can read more about our case study assignment help services here.

How it Works

How It works ?

Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.

Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.

Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id and must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.

Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.

Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.

Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.

Case Approach

Scientific Methodology

We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:

Defining Problem

The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.

Structure Definition

The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.

Research and Analysis

This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.

Conclusion & Recommendations

A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.

Related Services



The student should address the following

1. Corporate Analysis – consider the special relationship between Lehman and TRS. This created an unusual dynamic between the company and its investment banker. What expectations would follow within American Express from this relationship? How would the client /corporate interaction be affected? What are the advantages/disadvantages compared to the normal arms-length selection of an investment bank in a very competitive process? What are the implications in the deal process and the positives and negatives? Would you have retained Lehman for the assignment? Explain.

2. Situation Analysis – review TRS funding needs the distribution of the receivables in terms of risk and client profile, and the objectives for TRS in this effort. Evaluate and discuss the factors you find of importance.

3. Structure – explain and evaluate the differences in the securitization of charge card receivables vs. credit card receivables.

4. Agency Rating Processes – review and discuss the tradeoffs in the acquisition of a superior rating. What are the critical factors in the rating decision? Recommend any alternatives in the rating evaluation situation which may have better served TRS interests. Present your view on the role of the rating authorities and the enhancement of the effort to establish the best relationship and results with the agencies.

5. Marketing – comment on the considerations Lehman advised and pursued in the marketing of the securities. Review the principal factors of marketing strategy and the structure of the securitization package to enhance market acceptance.

6. Strategic Evaluation – do you believe TRS interests were served best by the secuitization approach? Compare to other alternatives in the capital markets.

7. How would a straight issuance of debt by TRS or American Express compared to the path taken by Lehman/TRS? Provide your rating (1-10; A to F) of the performance of Lehman and TRS.

For this assignment you may draw on relevant information outside of the case. Delivery of the class presentation should be in the format you find most effective. Assume you are a corporate working group preparing for the presentation and provide the delivery which you believe bests serves your viewpoint and leads to successful recognition of your efforts.

Product code: Case Study-AW207
Looking for best Case Study-AW207 online ,please click here