“This is not something a president should be doing or can do,” said Larry McDonald, head of the U.S. macro strategies at ACG Analytics. “It’s just noise, and it’s pretty far removed from reality.”
“This is not a dictatorship. We have bankruptcy judges and the rule of law,” McDonald said. “But it is scaring the bond market.”
Municipal bond insurers with exposure to Puerto Rico’s debt also saw their stocks fall. Shares of MBIA, Ambac Financial and Assured Guaranty declined 9.1 percent, 5.8 percent and 2.5 percent, respectively.
Mick Mulvaney, dire…
Read the full article at: https://www.cnbc.com/2017/10/04/puerto-rico-bonds-plunge-to-34-cents-on-dollar-after-trump-pledge-to-wipe-out-debt.html