Puerto Rico Defaulted 8% Bond Slumps To $24, Yield Rises To 32.878% (Population and Home Prices Continue To Decline)

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

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Puerto Rico has had its share of tragedies. First, they are fiscally incompetent (regularly spending more than they take in).  Second, they were devastated by Hurricane Maria leaving much of the island in shambles.

Peurto Rico has defaulted on its 8% general obligation (GO) bond maturing in 2035.

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The Commonwealth’s 8% GO bond has fallen to $24 and a yield of 32.878%. The good news? The bond’s modified duration has shortened to 3.287.

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Recent trades show a pattern of deterioration in the price.

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With hordes of people leaving the island and home prices declining since 2007, how can things get worse for the people of Puerto Rico?

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Oh wait!

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