Un-erasing Puerto Rico’s Debt

The context

Heather Gillers, WSJ:

Puerto Rico’s benchmark general obligation bonds maturing in 2035 traded at record lows of 30 cents on the dollar Wednesday, down from roughly 44 cents late Tuesday and 56 cents the day before Hurricane Maria hit. Holders of the bonds, which include mutual funds, hedge funds and direct investors, sold in heavy volume.

Howard Cure of Evercore Wealth Management told The WSJ: “I think the market was very anxious about the paper to begin with.”

David Kotok of Cumberland Advisors told Politico: “No idea what [Trump] means. It certainly threw a curve at markets.”

A reminder

Here are Mr. Trump’s comments on Puerto Rico, in an interview with Fox News:

 

Read the full article at the NYT: https://www.nytimes.com/2017/10/05/business/dealbook/puerto-rico-debt-trump.html


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