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Reality check: Trump can't wipe out PR's debt - BTIG

Published 10/04/2017, 09:16 AM
© Reuters.  Reality check: Trump can't wipe out PR's debt - BTIG
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  • The monolines are having a tough morning after the president last night suggested zeroing out Puerto Rico's debt in wake of Hurricane Maria.
  • The president is a powerful man, but beyond jawboning probably can't really influence the debt-restructuring process, says BITG's Mark Palmer. He also holds little sway over Judge Laura Taylor Swain, who was appointed by Supreme Court Chief Justice Roberts to oversee the whole thing.
  • Bottom line: Trump's comments do nothing to change what the ultimate bondholder recoveries will be.
  • OMB Director Mick Mulvaney is on the wires now as well saying there will be no bailout. "Puerto Rico is going to have to figure out a way to solve its debt problem."
  • MBIA (NYSE:MBI) and Assured Guaranty (NYSE:AGO) remain lower by about 5%. Ambac (NASDAQ:AMBC) now down 1.6%.
  • Previously: Monolines lower as president mulls wiping out Puerto Rico debt (Oct. 4)
  • Now read: CoreLogic (CLGX) Presents At Barclays (LON:BARC) 2017 Global Financial Services Conference - Slideshow


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