MBIA Incorporated has recently executed a significant transaction involving the sale of Custodial Receipts (CRs), which represent bankruptcy claims. On August 14, 2025, National, a subsidiary of MBIA, sold approximately $374 million face amount of CRs, corresponding to 47% of its principal bond claims in the ongoing PREPA Title III case. The bonds linked to these CRs had been fully satisfied through National's insurance claim payments. This move aims to reduce potential volatility and mitigate risks associated with National's remaining exposure to PREPA, amid ongoing uncertainties in the Title III case. Following this transaction, National no longer retains any additional CRs for sale.
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