- "The principal difference between Detroit and Puerto Rico is that Detroit wanted to default and Puerto Rico doesn't want to default," writes Christian Herzeca. Puerto Rico cannot file for Chapter 9 and has no desire to face creditors in a restructuring outside of a court-supervised process.
- Puerto Rico clearly faces issues, but its pension reform concluded earlier this year shows the territory not only needs public finance markets, but - unlike Detroit - places a good deal of importance on continued access to them.
- Bond insurers Ambac (AMBC), Assured Guaranty (AGO), and MBIA (MBI) have all taken a hit of late over Puerto Rico worries. Might there be an opportunity?
- See also: Puerto Rico concerns are overdone, and the panic may be helping the bond insurers.