Posted on 07/28/2015 3:56:18 PM PDT by jimbo123
As yet another key debt payment date closes in on Puerto Rico, here's a primer on what you should know, and who it will affect the most ahead of the deadline.
Q: If the Puerto Rico Public Finance Corporation (PFC) doesn't pay bondholders on Aug. 1, will it be considered a default?
A: Yes. According to Moody's vice president and senior credit officer, Ted Hampton, if there is no payment made on Friday, it will be the first default of a U.S. state, or state-like entity, since Arkansas couldn't make its bond payments during the Great Depression in 1933.
Q: What should Puerto Rico's bondholders do?
A: The outlook for Puerto Rico bondholders is rather bleak, said Nick Venditti, a portfolio manager at Thornburg Investment Management.
"If you're an investor in a heavily overweighted Puerto Rico municipal bond mutual fund, or have direct exposure to Puerto Rico's debt, your best-case scenario is to sell right now," Venditti said. "You won't be able to get a better dollar value return on your Puerto Rico investment than what it's trading at right now."
(Excerpt) Read more at cnbc.com ...
No taxpayer bailout for Jeb’s Florida cronies!
Give the whole thing back to Spain.
They can't afford it either.
Grant them independence.....or give them to Cuba.
We should have done one of those the same moment we cut Cuba loose.
ping
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