Trump administration budget chief Mulvaney stated in a BloombergPolitics article “I think what you heard the president say is that Puerto Rico is going to have to figure out a way to solve its debt problem.” Mr. Mulvaney went on to say, “We are not going to bail them out. We are not going to pay off those debts. We are not going to bail out those bond holders.”
Frequently overlooked in the discussion of the Puerto Rico debt crisis is the impact on bond insurers. Assured Guarantee and MBIA have not recently updated investors on their exposure to the Puerto Rico debt crisis. The most recent information available indicates that Assured Guarantee may have significant exposure to Puerto Rico debt.
