Puerto Rico Bonds Collapse

Puerto Rico Bonds Collapse to 36 Cents on Dollar following Trump Comments
Posted by Mish |

Puerto Rico general obligation bonds fell to 36 cents on the dollar after Trump told Fox News on Tuesday night that Puerto Rico’s debt will have to be wiped out.

Looking back, bonds prices started the collapse in 2014, well before Trump comments and well before hurricanes.

Puerto Rico borrowed billions of dollars, more than any state in the US except California and New York for energy infrastructure, but the money did not shore up its aging infrastructure.

Where did the money go?


Puerto Rico Bond Prices



Puerto Rico Infrastructure

Trump's Cruel Indifference to Puerto Rico

Trump's Cruel Indifference to Puerto Rico
A damaged Puerto Rican flag spray-painted with the words "Together as One" hangs from the facade of a business in San Juan. (Ramon Espinosa / AP)


“Puerto Rico is Trump’s Katrina, times 1,000,” says Rosa Clemente, comparing the aftermath of Hurricane Maria to the humanitarian crisis in New Orleans in 2005.

PUERTO RICO COULD BE FORCED UNDER SEC JURISDICTION

PUERTO RICO COULD BE FORCED UNDER SEC JURISDICTION
SUBMITTED BY SIMON BLACK OF SOVEREIGN MAN
What happened:

Puerto Rico has long been a safe haven for businesses and investors weary of the Securities and Exchange Commission. Despite the fact that Puerto Rico’s public sector is going through bankruptcy, the private sector has enjoyed relative freedom from the intrusive hands of the U.S. government.

That will change if a bill making its way through Congress becomes law.

Puerto Rico is officially bankrupt — now comes the hard part

Puerto Rico is officially bankrupt — now comes the hard part
AFP / Stringer

On Wednesday, Puerto Rico filed for what’s pretty much bankruptcy (it can’t file under Chapter 9 of the federal bankruptcy code like local government can, but a federal law passed last year allows bankruptcy in everything but name).
With bond debt reaching nearly $74 billion and pension obligations of roughly $49 billion, the territory’s level of debt, and subsequent move, is without historical precedent — even compared with Detroit’s $18 billion bankruptcy in 2013. [New York Times / Mary Williams Walsh]

Puerto Rico Oversight Board Mediates Last Ditch Debt Negotiations

Αrt3153 Τρίτη 18 Απριλίου 2017
Puerto Rico Oversight Board Mediates Last Ditch Debt Negotiations
Archbishop Calls for Debt Cuts as Island Heads to Bankruptcy

WASHINGTON - Within weeks, Puerto Rico will likely enter bankruptcy proceedings tailored by Congress specifically for the US territory. The island's government and creditors are engaged in final talks to try and resolve the dispute before a May 1 deadline. An oversight board created by Congress to deal with Puerto Rico's debt crisis is mediating the current round of debt talks. If no agreement is reached, the oversight board will likely vote for bankruptcy proceedings to begin.‎‎

Puerto Rico and Bondholders Agree on Electric Company Debt Deal

Αrt3153 Δευτέρα 17 Απριλίου 2017
Puerto Rico and Bondholders Agree on Electric Company Debt Deal
By Greg Williams

Puerto Rico’s electric utility company (PREPA) and bondholders reached an agreement to restructure $8.9 billion in debt, according to an announcement from the island's government. The deal still needs approval from a "control" board Congress created as part of debt crisis legislation passed last year.