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Each bond would convert into 9.529 shares.
Western uses a team approach, relying on specialists in each bond sector.
Each bond costs £1, with a minimum investment of £100 and maximum of £50,000.
Buying each bond in the Lehman aggregate would not be practical or cost-effective.
The agencies had an incentive to offer higher ratings because banks choose which ratings agency grades each bond.
Each euro zone country will guarantee 120 percent of its pro rata share for each bond issue to cover that of any country unable to contribute.
The rules vary for each bond, but typically banks have to turn over detailed information only to investors who own more than a quarter of a bond.
Thanks to this generosity, a wealthy pensioner who puts the maximum £10,000 in each bond will gain £570 a year.
Those so-called haircuts are mostly determined by the type of issuer and the maturity of each bond, and not by its rating.
Because the bonds do not mature until 2036 and 2045, prices will shoot up if interest rates fall sharply, he said, but a "put feature" on each bond gives him one chance to sell at par if rates rise.
The short trade these men make is now well known: an insurance policy against each bond known as a credit default swap, first sold by AIG Financial Products in London and then by Goldman Sachs and the Wall Street houses.
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CEO of Professional Science Editing for Scientists @ prosciediting.com