OfficeMax Stock Hurt by Lehman Fallout

Even though OfficeMax is not a financial stock, its stock was down 16% on Friday because of an indirect connection to Lehman Brothers.

This was OfficeMax's biggest one-day decline since October 1987.

It turns out that, in 2004, OfficeMax sold its timber assets to Boise Land & Timber and, in return, received $1.6 billion in installment bonds from Boise.

Half the value of these bonds were guaranteed by collateral bonds issued by Lehman.

Now, those collateral bonds are in default.

Right now, the Boise installment bonds have not defaulted, and OfficeMax is ok. But, if something happens to the installment bonds, OfficeMax would not be able to collect from Lehman.