The Traderszone Network

Published in TZ Latest News 5 August, 2015 by The TZ Newswire Staff

U.S. municipal bond insurers set to withstand Puerto Rico default

U.S. municipal bond insurers will likely weather any potential losses as a result of Puerto Rico’s debt crisis but a downgrade to their ratings or a loss of investor confidence longer-term could pose a serious challenge to their post-crisis recovery. Bond insurers insure about $13 billion of Puerto Rico’s $72 billion debt load, substantially more than they did in Detroit which centered on a few hundred million dollars of city debt, meaning that losses for the insurers could be much higher.

read more