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.
Entries filed under 'Municipal Bonds'
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.
The commonwealth is not out of the woods, but "ring-fencing" may offer bondholders some protections.
While new debt-restructuring legislation does not include the commonwealth itself, muni investors are clearly worried about the direction of the island’s government policy.