Puerto Rico is an example of Darkness on the Edge of Town (or the USA). Electricity on the island is coming back, but much of it was knocked out by the hurricane.
Puerto Rico’s Commonwealth bonds have fallen in price … again. Consider the 5.75% coupon bond. The already defaulted bond has been trading at under $60, but has now fallen to $33.45 on the deadly hurricane strike.
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While the media and political hacks scream “Trump’s fault!” (Much like “Jerry’s fault!” on Parks and Recreation), Puerto Rico’s $34 bond has been a long time in the making. Corruption, overspending and a declining population led to Puerto Rico’s bond default in May of $70 billion of obligations, long before the hurricane struck.
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