"MBI is sitting pretty with respect to Zohar, over secured and in postion to protect itself" according to Market Talk
Puerto Rico Gov. Alejandro García Padilla announced Friday that he was replacing his chief of staff.
Not sure what that means
If there was imminent threat to MBI...why trade May options when the leverage from nearbys is so much greater. Those trades could simply be a hedge.
At the ask. Time of trade: 1.69 x 1.96 all at 1.96
Today so far Calls: 2,022 of which 1900 traded at bid or below
Puts: 11,914 of which 10,963 traded at Ask or above
I'm just the messinger...don't hate me pls.
I'm pretty sure the pressure we saw this AM in MBI was from the mkt. makers balancing out those puts. If you're interested, ThinkorSwim platform has the B&A under the Market column in the Option Time & Sales section
I wish you were right. My software gives me the Bid & Ask at time of trade. That trade went off at the Ask
Someone just paid around $500,000 for the right to sell MBI at $7 between now and May of next year. That's a BIG BET. Just saying
I'm not close enough to know what anyone will do. Politicians scare the #$%$ out of me. You just never know.
Think corruption in PR is starndard procedure. Things need to change.
I stumbled on to Cate Long awhile ago...I use twitter for following interesting people. Never thought Twitter would be worth anything to me but it can link you to some great stuff. Glad you like her...I do too.
They are unbelieveable in Puerto Rico. They have no money BUT:
Puerto Rico electric utility Prepa gives 6 month, $1 million contract to public relations firm Joele Frank
November 19, 2015
GOVERNMENT DEVELOPMENT BANK FOR PUERTO RICO
ANNOUNCES MEETING WITH CREDITORS’ ADVISERS
Government Development Bank and Advisers to the Commonwealth to Host Meeting with
Advisers to Creditors of Puerto Rico’s Major Issuers Regarding Proposed Restructuring
San Juan, P.R. – The Government Development Bank for Puerto Rico (the “GDB”), its advisers, and
advisers to the Commonwealth will host a meeting with advisers to groups of bondholders
representing the majority of Puerto Rico’s principal issuers on Friday, November 20, 2015 in New York.
This meeting is being held with financial and legal advisers to bondholder groups that have already
formed and whose advisers have executed non-disclosure agreements governing discussions regarding
potential transactions involving the Commonwealth’s indebtedness. This meeting is being held to
discuss the GDB’s proposed restructuring plan with bondholders’ advisers. The meeting will not be
open to the public.
As previously announced, the proposed restructuring will be composed of a comprehensive single
transaction to be accomplished through a voluntary exchange offer. The GDB and advisers to the
Commonwealth will explain further details of the proposed structure to the creditors’ advisers. No
offer will be made at the meeting.
Advisers representing holders of the Commonwealth’s major credits will be represented at this
meeting, including those holding General Obligation bonds and bonds issued by COFINA and the
GDB. In advance of this meeting, the advisers have had the opportunity to undertake extensive due
diligence using data that the GDB provided to these advisers over the past several weeks, including
through in-person diligence meetings and an electronic dataroom.
“This meeting with consultants and advisers to many of the Island’s main creditors is part of our
continued effort to maintain a constructive and open dialogue with our key stakeholders,” said GDB
President Melba Acosta Febo. “The proposed restructuring process is a comprehensive plan that will
benefit all parties while supporting the creation of a sustainable path forward for the Commonwealth.”
As previously announced, details about the Commonwealth’s proposed restructuring process and the
key principles that will guide this process can be found in the presentation available on the GDB
Dan Hanson of Height says, like I do,(Cate Long) that Puerto Rico will likely make all Dec 1 debt payments. I believe they have the capacity
Maybe you're right but I think his intention is to hold the Puerto politicians' feet to the fire. Plenty of corruption and wasted money I expect him to ask about. Could be uncomfortable for the island poiticians to default on the very same day. Taking a small option position hoping for some positive MBI news on Dec.1 knowing full well it could also be negative.
Senator Chuck Grassley, who chairs the Senate Judiciary Committee, said on Thursday he will convene a hearing on Puerto Rico's financial turmoil on Dec. 1.
The Dec. 1 hearing coincides with a roughly $355 million debt payment owed by Puerto Rico to some of its bondholders. Moody's on Wednesday said it is likely Puerto Rico will default on the debt, and Puerto Rico's governor, Alejandro Garcia Padilla, has said the island would default if forced to choose between paying debt and continuing vital services.
If you want to stay ahead of Puerto Rico/MBI issues, look up Cate Long on Twitter @cate_long