Futures traders downbeat on Lehman's earnings

Traders in the options and derivatives markets are betting on shares in troubled US investment bank Lehman Brothers to fall further, Bloomberg reports.

Negative predictions on the stock have hit a two-month high, amidst reports of liquidity concerns at the firm.

Bearish bets on Lehman put options - which give investors the right to sell stock at a certain amount on a certain date - even exceeded bullish bets by a ratio of 1.6 to one yesterday.

Recently-released analysis has also predicted that Lehman's will report its first quarterly loss since the bank was made public in 1994.

Stock in the bank is currently approaching a five year low, dipping under $30 a share.

Overall, the shares have declined in value by 54 per cent so far in 2008.

Commenting, Bank of America Michael Hecht suggested that the balance sheet worries at the bank were real.

"Lehman may need to raise equity capital,'' he told the news agency.