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By Andrew Scurria Puerto Rico moved closer to resolving the largest municipal-debt default in U.S. history after creditors owed roughly $11.7 billion backed a settlement framework, the most Wall Street support yet amassed for a restructuring of the territory s core public debts. The proposed settlement released Tuesday would reduce roughly $18.8 billion in general obligation debt by around three-fifths to roughly $7.4 billion, lowering interest payments to bondholders to levels that Puerto Rico s financial supervisors believe it can support after years of population loss and economic decline. We achieved a fair, sustainable, and consensual agreement that puts Puerto Rico on a path to recovery and is an important tool to lift the weight of bankruptcy from the people and businesses of Puerto Rico, said David Skeel, chairman of the financial oversight board that steered negotiations.
The municipal secondary gave way to higher-yields and triple-A benchmarks rose two to five basis points. U.S. Treasuries pared back Tuesday's losses, even on the heels of better economic data.
The Globe and Mail Published February 8, 2021 Bookmark
Warren Buffett transformed Berkshire Hathaway Inc. from a small textile firm into a gigantic insurance-focused conglomerate. It now sports a book value of US$415-billion – the largest in the S&P 500.
Something called float helped power its growth.
Francis Chou pointed out the importance of float to his friend Prem Watsa, who put the knowledge to work soon after when he gained control of Fairfax Financial Holdings Ltd. , then known as Markel Financial, in 1985.
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Mr. Watsa increased Fairfax’s book value with gusto over the long term. It climbed from US$7.6-million in 1985 to US$12.9-billion as of the most recent quarter.
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