One of Puerto Rico’s largest bond guarantors, MBIA Inc., called for an investigation into “suspicious trading activity” by hedge funds that bought up the U.S. territory’s bonds while hashing out a deal to boost settlement payments on the debt. Hedge-fund managers bought nearly $3 billion in Puerto Rico’s general-obligation bonds during confidential negotiations in which they were involved, according to court papers filed Tuesday by MBIA’s National Public Finance Guarantee Corp. The resulting agreement, announced in February,...

Source: Wall Street Journal October 07, 2020 00:11 UTC