Debate Over "Wiping Out" Puerto Rican Debt As Baupost Revealed As Big Holder

After President Donald Trump surprised Wall Street by saying that Puerto Rican debt might be “wiped out,” sending Puerto Rican debt tumbling in early morning trade, the White House later walked back such comments as the governor of Puerto Rico encourages bondholders to join with him and encourage Congress to provide the island an aid package. BTIG says that Trump doesn’t have the authority to eliminate Puerto Rico’s debt, echoing early ValueWalk reporting that noted bondholder payments are likely to be determined by a judge. The bondholders, led by Seth Klarman’s Baupost Group, have a vested interest in ensuring that Congressional…