- The monolines are having a tough morning after the president last night suggested zeroing out Puerto Rico's debt in wake of Hurricane Maria.
- The president is a powerful man, but beyond jawboning probably can't really influence the debt-restructuring process, says BTIG's Mark Palmer. He also holds little sway over Judge Laura Taylor Swain, who was appointed by Supreme Court Chief Justice Roberts to oversee the whole thing.
- Bottom line: Trump's comments do nothing to change what the ultimate bondholder recoveries will be.
- OMB Director Mick Mulvaney is on the wires now as well saying there will be no bailout. "Puerto Rico is going to have to figure out a way to solve its debt problem."
- MBIA (NYSE:MBI) and Assured Guaranty (NYSE:AGO) remain lower by about 5%. Ambac (NASDAQ:AMBC) now down 1.6%.
- Previously: Monolines lower as president mulls wiping out Puerto Rico debt (Oct. 4)