- MBIA (NYSE:MBI) rises 4% in premarket trading after Cofina bondholders reach a debt-restructuring deal with Puerto Rico.
- MBIA has about $700M of par exposure to senior Cofina bonds, says MKM analyst Harry Fong in a note, according to Bloomberg. He sees MBIA recovering about 95 cents on the dollar of its pre-petition amount and thinks the company may become more aggressive about buying back stock once the Puerto Rico situation is more certain.
- Ambac's (NASDAQ:AMBC) Cofina holdings account for about $805M of its total Puerto Rico exposure of about $2.0B, Fong wrote in a separate note. He sees AMBC shifting to other directions.
- BTIG analyst Mark Palmer calls the Cofina deal a "huge win" for Ambac.
- Previously: Assured Guaranty join agreement on Puerto Rico sales tax revenue (Aug. 9)
- Previously: Puerto Rico reaches sales-tax bond restructuring (Aug. 9)
- Now read: LendingClub dives 9.7% after reporting expense, impairment charges
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