Hints and tips:
...The bond’s guaranteed principal payment is expected to be AAA-rated by S&P, according to the World Bank. The bond will be listed on the Luxembourg Stock Exchange....
...“They are trying to play the green idea,” said one bond fund manager. “It’s smart.”...
...(Bloomberg) News round-up ExxonMobil weighs sale of Malaysian offshore assets (BBG) Thomas Cook’s shops bought by Hays Travel (FT) AT&T to sell Puerto Rico business as it looks to pay down debt (Wall...
...Even as Puerto Rico was becoming a distressed credit, muni-bond mutual funds had to buy its bonds because Puerto Rico was a component of the index....
...In the hour-long podcast, Mr Paulson touched on topics including his bet on Puerto Rico as a tax haven, his support for US President Donald Trump, his push for the government to privatise Fannie Mae and...
...That could be a nod to recent events in Puerto Rico, where customers were caught out after using loans secured against portfolios of government bonds to buy more government bonds....
...Guy Davidson, a portfolio manager with AllianceBernstein, says that the issues in Puerto Rico remain isolated to the territory....
...“Puerto Rico has to meet its constituents’ basic needs,” said Julio Bonilla, a portfolio manager at Schroders, who does not own any of the island’s bonds....
...They were created in 2006 to help Puerto Rico borrow billions more. The two account for $31bn of Puerto Rico’s $74bn of bond obligations that will fall due over the next four decades....
...Rico and wildfires in California....
...Shawn Matthews, chief executive of Cantor Fitzgerald, a mid-sized broker-dealer, noted that the threat of mark-to-market losses on bonds tied to Puerto Rico, and the energy sector, had made investors more...
...Investment grade bonds issued by Puerto Rico, worth roughly $8bn, have returned more than 10 per cent this year, according to Barclays....
...– From the NYT again: “The teachers’ pension fund in Puerto Rico looks very much like a legalized Ponzi scheme — one that might hold a warning for teachers across America....
...The tax benefit was — for a time — a boon to municipal bond fund managers across the US who often struggled to find enough of a given state’s bonds to fill a portfolio....
...Puerto Rico used to be a hallmark of many municipal bond portfolios for its lofty yields, but most managers have sold their holdings over the past few years....
...Policymakers now argue that funds set aside for Cofina should be used to service Puerto Rico’s $49.2bn debt pile, including general obligation bondholders who enjoy a constitutional guarantee....
...My long-form recommendation was the New York Times’s analysis of mortality in Puerto Rico to estimate the death toll from Hurricane Maria....
...Puerto Rico has already defaulted on bonds issued by two of its agencies....
...Troubled pensions played a role in Detroit’s bankruptcy and the debt crisis in Puerto Rico, two of the biggest blow-ups in US public finance in recent years....
...The agreement between Puerto Rico Electric Power Authority, known as Prepa, and a group of municipal bond investors, hedge funds, fuel line lenders and the commonwealth’s de facto finance authority clinches...
...Concerns have heightened over the seniority of different bonds and how Puerto Rico will rank creditors....
...He says the ETF uses AAA-rated bonds issued by three US government backed agencies that provide housing finance: Ginnie Mae, Fannie Mae and Freddie Mac....
...While it is effectively impossible to directly short sell Puerto Rico’s $70bn of bonded debt, it would have been quite possible to dump the shares of municipal bond insurance companies who guaranteed some...
...Peter Hayes, head of municipal bonds at BlackRock, the world’s largest fund manager, said the missed payment would be an “awakening” for investors who were holding Puerto Rican debt to generate income....
...“A significant portion of Puerto Rico’s debt is still held directly by individual retail investors or indirectly through the municipal bond funds they own.”...
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