Excerpt from MarketWatch Featuring John R. Mousseau, CFA...
‘In a muni bankruptcy, the same entity emerges’: Puerto Rico exits bankruptcy with questions remaining
By Andrea Riquier – First Published: Jan. 19, 2022
Puerto Rico on Tuesday received court approval to exit its municipal bankruptcy, restructuring over $30 billion of debt, but leaving plenty of questions about the sustainability of its finances.
“This is a significant step forward,” said John Mousseau, president and CEO of Cumberland Advisors, which has $4.1 billion in assets. Cumberland holds only insured Puerto Rico bonds. “This bankruptcy has been a dark cloud for a long time. It hasn’t been beneficial to anyone. If you end up with a plan where no one is happy you probably have the right plan.”
Still, Mousseau said in an interview, “people have short memories. People said no one would ever buy Detroit’s paper again, but they are. I think people will be buying (Puerto Rico debt) again. It will be more secure but not without risk.”
Mousseau thinks Puerto Rico should be granted statehood.
Read (or listen to) the full article at MarketWatch.com: https://www.marketwatch.com/story/in-a-muni-bankruptcy-the-same-entity-emerges-and-the-same-issues-puerto-rico-exits-bankruptcy-with-questions-remaining-11642609973
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