Global Diversified Investment Grade Income Trust - Credit event notices with respect to Lehman Brothers Holdings, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation



    MONTREAL, Oct. 10 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust ("Global DIGIT") (TSX: DG.UN) announces that, on October 2 and 3,
2008, MMAI-I Trust ("MMAI-I") received Credit Event Notices with respect to
Lehman Brothers Holdings Inc. ("Lehman"), Federal National Mortgage
Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation
("Freddie Mac").
    Substantially, all of the assets of Global DIGIT consist of three credit
default swaps ("GD Swaps") entered into with MMAI-I and the related collateral
to secure obligations under the GD Swaps. The GD Swaps are mirrored by
back-to-back credit default swaps (the "MMAI-I Swaps") between MMAI-I and
Deutsche Bank A.G. (the "Bank").
    On October 30, 2007, Global DIGIT entered into an amendment (the
"Amendment") to its three credit default swaps with MMAI-I. As a result of
these amendments, Global DIGIT will not experience any loss under any credit
default swap pursuant to credit events under mortgage-backed securities or
asset-backed securities (the "Contingent Exposure") included in the portfolio
of reference obligations related to such credit default swap until the
corporate CDO exposures (the "Primary Exposure") in such portfolio have all
defaulted and their notional amount has been reduced to zero. The Primary
Exposure consists of multiple tranched exposures within five corporate CDOs
with attachment points (the point in the capital structure where the exposure
to losses in the portfolio begins) varying between 7.85% and 11.00% and
detachment points (the point in the capital structure where the exposure to
losses ends) varying between 9.55% and 13.00%.
    Subsequent to these Credit Events (Lehman, Fannie Mae and Freddie Mac),
it is expected that both the attachment and detachment points will be lowered,
due to the reduction of subordination within the capital structure. The
aforementioned reduction will be known in December 2008 or before. Regardless
of the recovery rate that will be determined for the above mentioned reference
entities, Global DIGIT will not suffer a loss pursuant to these Credit Events.

    About Global DIGIT

    Global DIGIT provides an economic interest in a mezzanine tranche of
credit default swap agreements in respect of portfolios of corporate CDO
exposures, mortgage-backed securities and asset-backed securities.




For further information:

For further information: François Rivard, (514) 879-6405,
http://info.fbn.ca/trusts

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Global Diversified Investment Grade Income Trust

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