President Trump’s Puerto Rican Debt Comments Have Spooked Investors
“The biggest risk for Puerto Rico and the creditors is that the rebuilding of basic infrastructure takes so long that the out-migration worsens, and you see people put roots down in other places,” said Jim Millstein, CEO of financial advisory firm Millstein & Co. Millstein recently advised Puerto Rico on managing its debt.
So far, the emigration is already happening. An estimated 7,000 people have already left via the Luis Munoz Marin International Airport, with “tens of thousands more” likely to follow, a recent Municipal Market Analytics note read. But on a more optimistic note, investors such as John Mousseau, the director of fixed income at Cumberland Advisors, says he waiting for financial aid from the federal government to help rebuild and strengthen Puerto Rico’s economy.
“If you get this rebuilding underway, you start seeing Puerto Rico turning the other way,” he told Fortune in late September.
Read the full article here: http://fortune.com/2017/10/04/puerto-rico-donald-trump-debt-bankruptcy
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