Seeking Alpha

Morgan Stanley looks to raise $2B for Puerto Rico

  • Morgan Stanley (MS) has contacted hedge funds, private-equity firms and other large investors to see how interested they would be in providing $2B in financing to Puerto Rico in return for yields as high as 10%, the NYT reports.
  • The Commonwealth hasn't actually hired Morgan Stanley, which is acting on its own to put together a proposal that the bank can take to the government.
  • Puerto Rico is struggling with high unemployment and massive debt, and is facing a downgrade into junk territory from Moody's. Such a move would accelerate $1B of payments.
  • Complicating matters is that the Commonwealth can't file for Chapter 9 bankruptcy protection.
  • ETFs: MUB, PZA, MUNI, TFI, ITM, MLN, XMPT, SHM, SUB, PZT, PRB, NYF, SMB, PVI, SMMU, INY, VRD, GMMB, RVNU
Comments (1)
  • Ah, would this be the same Puerto Rico that is on the verge of default?
    Good luck receiving even one coupon ..
    22 Jan, 04:39 AM Reply Like
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