Friday, 19 May 2017

Puerto Rico restructurings

Puerto Rico, one of many municipal bankruptcies likely to happen in the US and Europe over the next few years is coming to a head. The current price of 59c for the GO bonds might prove somewhat optimistic vs where they trade after a yet to be agreed deal is finalised.

The PR development bank this week agreed a 55c recovery, with its bonds trading in the low 20s before hand. That equated to a 17% yield on the post-restructuring notes, plus pull to par. 

No comments:

Post a comment