|Bid||46.90 x 1800|
|Ask||47.04 x 800|
|Day's Range||46.63 - 46.99|
|52 Week Range||36.13 - 47.97|
|Beta (3Y Monthly)||0.96|
|PE Ratio (TTM)||11.11|
|Earnings Date||Nov 7, 2019|
|Forward Dividend & Yield||0.72 (1.56%)|
|1y Target Est||55.25|
Assured Guaranty Ltd. today announced that it will issue its financial results press release for the third quarter ended September 30, 2019 after 4:00 p.m. Eastern Time (5:00 p.m.
(Bloomberg Opinion) -- Even for a longtime observer of the U.S. municipal-bond market, it has been tough to keep up with the play-by-play of Puerto Rico’s unprecedented bankruptcy.After all, it has already been more than four years since the commonwealth’s governor first declared its debt unpayable and said investors should prepare to sacrifice. Congress passed a law called Promesa in 2016 that allowed Puerto Rico to seek bankruptcy, and in May 2017 it did just that. A federal board overseeing the island’s finances has been gradually working with various stakeholders to reach an agreement. On Sept. 27, the board took what appeared to be a crucial step by releasing a full-fledged restructuring plan that laid out how much bondholders and retirees stood to lose.In an ordinary bankruptcy, it would now be a straightforward question of whether pensioners and creditors agree to the terms and what tweaks might be needed to get to the finish line. But this is Puerto Rico. Rather than approaching the endgame, this week could wind up dealing a setback to the foundation of the restructuring process.The U.S. Supreme Court will hear oral arguments on Tuesday in a case brought by Aurelius Capital Management that challenges the constitutionality of the federal oversight board. The issue revolves around a provision known as the appointments clause, which specifies how “officers of the United States” are selected for their positions (nominated by the president, confirmed by the Senate). When Congress enacted Promesa, it stipulated that the oversight board was an entity created within the commonwealth and therefore not part of the federal government, so it didn’t have to appoint members in the usual way.Promesa states that neither Puerto Rico’s governor nor its legislature can control or supervise the oversight board. The elected officials also can’t enact statutes that would hamper the board’s ability to work through the bankruptcy. Without getting into strict legal arguments, it does seem somewhat odd for a “territorial entity” to have no accountability to the leaders of the same territory. A federal district court dismissed that argument, basically stating that Congress has sweeping authority when it comes to U.S. territories and can structure governmental entities and appoint officers accordingly. Yet that hardly convinced the U.S. Court of Appeals for the First Circuit. “The district court was certainly correct that Article IV conveys to Congress greater power to rule and regulate within a territory than it can bring to bear within the fifty states,” the judges wrote in their opinion. However, “we do not view these expanded Article IV powers as enabling Congress to ignore the structural limitations on the manner in which the federal government chooses federal officers.” The oversight board members, they said, are indeed U.S. officers. And because they weren’t nominated by the president and confirmed by the Senate, the current board violates the appointments clause.Aurelius, which was famously part of a group of holdout creditors that refused to reach a deal during Argentina’s debt crisis, asked the court to invalidate everything the oversight board has said and done so far. After all, its members were unconstitutionally appointed.But even the appeals court refused to go that far:“We fear that awarding to appellants the full extent of their requested relief will have negative consequences for the many, if not thousands, of innocent third parties who have relied on the Board's actions until now. In addition, a summary invalidation of everything the Board has done since 2016 will likely introduce further delay into a historic debt restructuring process that was already turned upside down once before by the ravage of the hurricanes that affected Puerto Rico in September 2017....Our ruling, as such, does not eliminate any otherwise valid actions of the Board prior to the issuance of our mandate in this case.”Even if the Supreme Court agrees with this ruling, it might not be as damaging as it could be for the board’s progress: After the appeals court ruling, President Donald Trump opted to nominate the same seven members now serving on the board for Senate approval.But then there’s the restructuring proposal itself. Released last month, it seems like a lesson in shared pain. It would cut the commonwealth’s debt and other liabilities by 60%, to $12 billion from $35 billion. As for government employees, those with pensions that pay less than $1,200 a month wouldn’t be impaired, while those earning more than that (about 40% of retirees) would have their benefits cut by 8.5%. Those losses could be restored if Puerto Rico grows faster than anticipated. For now, the plan would reduce the $54.5 billion pension obligation to $45 billion.Favoring pensioners over bondholders is nothing new. But perhaps the most interesting part of Puerto Rico’s bankruptcy plan is how the board is continuing to push the idea that it can simply wipe out $6 billion of general obligation bonds from 2012 and 2014 because selling them in the first place breached the island’s constitutional debt limit. I wrote in January about how that outcome could prove critical for the next big muni-market default, wherever it may be.The board clearly thinks its threat has merit, judging by the paltry recovery rates it’s offering to investors. While G.O. bonds issued before 2012 would recoup 64 cents on the dollar, 2012 and 2014 vintages would get just 45 cents and 35 cents, respectively. If holders of 2012 and 2014 debt turn down the deal, they can try to fight for the same recovery as the rest of the bonds in court, though if they lose they’d get wiped out entirely. The stakes are high: The 2014 Puerto Rico debt is still trading at about 60 cents on the dollar, and Aurelius is one of the primary owners.All the while, the commonwealth has paid about $400 million in legal and advisory fees, according to an analysis from Debtwire. The island’s population decline continues, with about 133,500 people moving from Puerto Rico to the mainland in 2018, according to census data. Last week, protesters gathered in front of the governor’s mansion in San Juan and what they thought were the private homes of oversight board members to voice opposition to the cuts to some pensions. Puerto Rico Governor Wanda Vazquez said she didn’t support reduced benefits but wanted the board to finish “as soon as possible.”Puerto Rico’s bankruptcy has always been messy, but years later, it seems just as chaotic, if not worse. Assured Guaranty Ltd., in an Oct. 2 statement, said it doesn’t support the board’s restructuring plan though noted that “an end to the Puerto Rico debt crisis is in sight.” All it would take, the bond insurer said, is “consensual resolutions and accurate financial data, and not by attempting a cramdown on investors who have supported the island for decades.”In other words, Puerto Rico doesn’t seem anywhere close to the end of this unfortunate chapter in its history.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
An unloved yieldco saw a beneficial owner make a big buy. Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. TerraForm Power Inc (NASDAQ: TERP) 10% owner Brookfield Asset Management stepped up to the buy window this past week.
BlueMountain Capital, the hedge fund that battled bitterly with California utility group Pacific Gas and Electric over its plans to file for bankruptcy, is shutting down its flagship fund as the group’s co-founder prepares to leave. Stephen Siderow, who co-founded the group with Andrew Feldstein in 2003, will leave at the end of the year “to consider new opportunities”, according to a statement.
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). To keep it practical, we'll...
(Bloomberg) -- BlueMountain Capital Management, the former high-flier that gained renown for a winning bet amid the London Whale tumult, is closing its flagship hedge fund and losing a co-founder a week after the firm’s purchase by Assured Guaranty Ltd.Co-founder Stephen Siderow will leave by the end of the year, the firm said Tuesday in a statement. Earlier this month, the $19 billion BlueMountain was sold to Assured Guaranty for $160 million.The hedge fund started by Andrew Feldstein and Siderow was hailed for making $300 million in 2012 by betting against JPMorgan Chase & Co., which was embroiled in the infamous London Whale credit securities scandal. Since then, the firm has had a series of setbacks. Its flagship fund has struggled to perform, and earlier this year BlueMountain shuttered its $1 billion computer-driven portfolio and its long-short equities book.In May, Affiliated Managers Group Inc. -- BlueMountain’s then-majority shareholder -- wrote down the value of its stake by $415 million after determining that the firm’s growth prospects had dimmed. It has also seen staff depart. As of August, BlueMountain employed about 140 people compared with 252 in March.The $2.5 billion flagship BlueMountain Credit Alternatives Master Fund has been struggling for years. It hasn’t met its annual return target of 8% to 10% since 2012 and lost money last year. Since inception in 2003, the fund has returned an annualized 6.7%.Still, it charges performance fees of as much as 30% -- higher than the industry standard.Over the past three years, the fund’s assets have plunged $4 billion as frustrated investors asked for their money back. Bloomberg reported in August that BlueMountain’s clients had asked for an additional $2 billion in redemptions over the next three years.Industrywide, hedge fund closures are on the rise. In the first half of this year, 399 hedge funds have shut, an increase from the first half of 2018, according to Hedge Fund Research Inc.BlueMountain plans to launch new strategies related to collateralized loan obligations and structured finance.(Updates with fund performance in fifth paragraph.)To contact the reporter on this story: Hema Parmar in New York at email@example.comTo contact the editors responsible for this story: Alan Mirabella at firstname.lastname@example.org, Vincent BielskiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Assured Guaranty does not support the Oversight Board’s proposed Plan, which is premised on a number of terms that Assured Guaranty believes violate Puerto Rico law, its constitution and PROMESA. The Plan also ignores the rule of law on which our society and financial systems rely, and constitutional liens and priorities.
Assured Guaranty Ltd. (together with its subsidiaries, Assured Guaranty), the leading financial guaranty insurance company, announced that its subsidiary Assured Guaranty US Holdings Inc. (AGUS) has completed the acquisition of alternative asset management firm BlueMountain Capital Management, LLC (BlueMountain), on substantially the same terms disclosed on August 7, 2019, including the purchase of all of the outstanding equity interests in BlueMountain and its associated entities for a purchase price of approximately $160 million. “This transformative transaction combines two culturally compatible companies that have complementary strengths,” said Assured Guaranty President and CEO Dominic Frederico. “We expect it to significantly benefit Assured Guaranty’s shareholders and policyholders by furthering our goal of leveraging our capital through business diversification while continuing our share repurchase program and supporting growth at BlueMountain.
Frankfurt : 7LX) ("Galaxy Digital" or the "Company") announced that it has appointed Ashwin Prithipaul as its new Chief Financial Officer, effective today. Mr. Prithipaul is taking over the role from Donna Milia , who is assuming the role of senior advisor at the Company. Prior to his appointment as CFO, Prithipaul has been the Chief Accounting Officer at Galaxy Digital since August 2018 .
Puerto Rico would reduce a major portion of its debt by more than 60% under a long-awaited restructuring proposal the bankrupt U.S. commonwealth's federally created financial oversight board filed in court on Friday. The so-called plan of adjustment covering $35 billion of bonds and claims and more than $50 billion of pension liabilities would allow Puerto Rico to exit a form of bankruptcy that commenced in May 2017 if it wins U.S. District Court approval. "This is the beginning of the end of Puerto Rico's bankruptcy process," José Carrión, chairman of the oversight board, told reporters following a public hearing on the plan.
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The...
President/CEO/Deputy Chairman of Assured Guaranty Ltd (30-Year Financial, Insider Trades) Dominic Frederico (insider trades) sold 30,300 shares of AGO on 08/22/2019 at an average price of $43.7 a share. Continue reading...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Assured Guaranty Ltd. New York, August 20, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Assured Guaranty Ltd. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Moody's Investors Service ("Moody's") has today changed the outlook to negative from stable on Sutton and East Surrey Water plc (SES Water), a water-only company operating in the South East of England. At the same time, the rating agency affirmed the Baa1 underlying senior secured rating on the company's GBP100 million 2.874% Guaranteed Secured Index-Linked Eurobond due 2031. The rating action follows the July-publication of the draft determination for the next five-year regulatory period commencing in April 2020.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Sutton and East Surrey Water plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
The insurer hopes BlueMountain Capital will be the anchor of its money-management business. As part of the deal, Affiliated Managers Group is selling its stake for $91 million in cash.
Affiliated Managers Group, Inc. (AMG) today announced that it has entered into an agreement with a subsidiary of Assured Guaranty Ltd. (AGO) and BlueMountain Capital Management, LLC, under which AGO will purchase 100% of the outstanding equity interests in BlueMountain and its associated entities. As part of the transaction, AGO will contribute cash to BlueMountain to fund its working capital needs and the repositioning of the firm. “We are pleased to have had a good partnership with BlueMountain over many years, and also that we worked closely with our long-term partners at BlueMountain to achieve an outcome that is in the best interests of BlueMountain’s clients and employees and AMG’s shareholders.