- "The potential impact of Puerto Rico on the municipal market is difficult to overstate," writes Jeff Westergaard at Morningstar, which views events there as the most important since the near-meltdown of NYC in 1976.
- Unlike Detroit, Puerto Rican debt is widely held due to its "double-tax-free" benefit, and many individuals in high-tax states hold the paper individually or in funds. Also, the amount of Puerto Rican debt out there is several multiples of that of Detroit.
- As a territory Puerto Rico cannot take advantage of Chapter 9 - "without engaging in speculation, it is safe to say that all muni market participants have a vested interest in a positive outcome for the commonwealth."
- Muni ETFs: MUB, SUB, MUNI, PVI, PZA, SHM, TFI, VRD, HYD, ITM, MLN, PRB, SMB, GMMB, SMMU, RVNU, NY.
Puerto Rico comparable to NYC in 1976
Sep 25 2013, 07:53 ET