A White House proposal that would allow the commonwealth to file for bankruptcy drove down prices of Puerto Rico municipal bonds, but the offer likely has little chance of passage in Congress.
Entries by Daniel S. Solender, CFA
The government has the ability to pay interest, but apparently is no longer willing to pay bondholders.
Here’s an assessment of the possible fallout from Governor Garcia Padilla’s statement that the commonwealth will be unable to pay its $72 billion in municipal debt.
Ever wonder where all those attractive tax-free yields come from? If you’re thinking mostly from general obligation bonds, think again. Revenue bonds comprise a much larger portion of the investable universe.