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Finra investigates trading in new Puerto Rico bonds

  • The Financial Industry Regulatory Authority is looking into trading in the $3.5B worth of bonds that Puerto Rico auctioned earlier this month.
  • The probe comes amid concerns that the debt is being improperly sold to individual investors.
  • In its prospectus, Puerto Rico said it would issue the paper in minimum denominations of $100,000, with the idea being to discourage smaller investors. However, the notes have been changing hands in amounts as low as $5,000.
Comments (3)
  • 395308
    , contributor
    Comments (61) | Send Message
     
    You an buy other pr go bonds in small denoms... but not these ? Looks like they are trying to hose the little guy.
    23 Mar 2014, 09:26 AM Reply Like
  • King Rat
    , contributor
    Comments (855) | Send Message
     
    In ordinary circumstances you encourage $5k or $25k denominations. Either they are expecting a credit event and want to keep the buyers in the "bailout" demographic or they are doing something else backward.

     

    Then again, look at the state of the Puerto Rican government and their finances. Of course they are doing something backward. They are doing a lot of things backward. They are worse than California.
    23 Mar 2014, 02:37 PM Reply Like
  • Jake2992
    , contributor
    Comments (831) | Send Message
     
    California has the largest economy of any US state, by far. What have the po dunk red states produced other than ignorant racists?
    23 Mar 2014, 10:07 PM Reply Like
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