Low Oil Prices Could Accelerate Puerto Rico's Recovery
Fri, Jan. 9 • 4 Comments
- Like many other island economies, Puerto Rico is disproportionately reliant on oil.
- Power generation is 68% oil.
- Every $20 per barrel fall in oil prices reduces what Puerto Rico residents pay by 1.1% of the Island's GDP.
CVR Refining, LP And CVR Partners, LP Trading At Significant Discount To CVR Energy, Inc.
- CVI holds 2 assets: 53% of UAN and 66% of CVRR.
- The market value of CVI's holdings of these two MLPs is currently about 65% of CVI's market cap, close to the lowest point since all three have been publicly traded.
- CVI's holdings of CVRR and UAN have traded as high as nearly 105% and have averaged over 80% of CVI's market cap.
- Convergence toward mean relative valuations would result in a 20% increase in the market value of CVI's two MLP holdings relative to CVI's market cap.
Is Puerto Rico The Next Greece?
Mar. 30, 2014 • 3 Comments
- Puerto Rico's fiscal condition has been compared to Greece's.
- This ignores Puerto Rico's credit strengths including debt service under 15% of government revenues.
- But what is most misunderstood about all governments' finances is that lack of will, not lack of means, is usually the more serious threat to bondholders.
- Continued Hysteria Over Puerto Rico Provides One Last Buying Opportunity
- Is It Crazy To Buy These Bonds?
- It's Not Crazy To Buy Bonds
Bonds Or Equities: Intended And Unintended Consequences Of Fed Policies
Oct. 31, 2013 • 2 Comments
Panic In Puerto Rico Bonds Presents Buying Opportunity
Sep. 19, 2013 • 13 Comments