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. 

https://emma.msrb.org/SecurityDetails/TradeActivity/A4E4A05FC0DDC577A68DDF57DF6A9B5C2 

https://seekingalpha.com/article/4084081-puerto-ricos-oversight-board-must-kill-prepa-bond-deal

http://www.gdb-pur.com/documents/PlanFiscal13demarzo2017.pdf

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