Klarman Ends Up In Odd Alliance with Puerto Rican Debt Forgiveness Advocates

Here is what is missing from the latest coverage on Klarman's letter regarding COFINA debt.

When Congress agreed on bi-partisan legislation regarding Puerto Rico’s debt load, first noted by ValueWalk April 15, 2016, the agreement acknowledged the unsustainability of the debt load. In crafting legislation at the time, lawmakers didn't realize that Hurricane Maria, packing what could be a $40 billion to $85 billion punch, was on the way. But in case of such disasters, there were several core performance drivers built into the legislation that used a carrot to get both sides working together to achieve the same outcome.

As Seth Klarman’s Baupost Group continues to take fire from activist groups for resisting attempts by...