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.
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