Wednesday 28 June 2017

PREPA deal rejected, much bigger haircut likely coming

The PREPA deal has been rejected by the oversight board. Presumably leading to a much bigger PREPA bond haircut than the 25% or so proposal. The bonds have dropped from the low to mid 60s to the mid 50s on the back of this. Even then, seems like a really punitive haircut is a real possibility and not discounted by the market with a mid-50s bond price.

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