Entering text into the input field will update the search result below

General obligation debt part of Puerto Rico's restructuring plan

Sep. 09, 2015 2:12 PM ETNUV, EIM, BFK, BLE, EVN, IIM, OIA, PMM, KTF, VKI, LEO, AFB, NAD, PMX, PMF, PML, DSM, NVG, NEA, BKN, VGM, VMO, NXP, MVF, MUB, TFI, PZABy: Stephen Alpher, SA News Editor7 Comments
  • General obligation bonds have been viewed as essentially default-proof forever, but part of Puerto Rico's five-year plan to restructure its $72B in debt includes the Commonwealth's GO paper.
  • These bonds were issued with a constitutional promise that the government would pay the debt service ahead of any other bills it has. "Unheard-of" is how the plan is described in a NYT article pondering the spillover effect to other GO debt should Puerto Rico successfully restructure.
  • Bond investors will no doubt put up a major fight, and Van Eck strategist Jim Colby expects a constitutional battle. Moody's Ted Hampton agrees, and sees a high probability of a long legal war.
  • Source: Barron's
  • ETFs: MUB, IIM, NUV, PML, NIO, PZA, LEO, VMO, NEA, PMF, PMX, BFK, EVN, BLE, DSM, KTF, NQU, NXP, VGM, PMM, AFB, MVF, VKI, EIM, NQM, NPM, TFI, OIA, BKN

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.