Prices of Puerto Rico bonds suggest that investors are circumspect when its comes to possible progress in a debt exchange of the island’s securities and focusing on whether the commonwealth makes good on $711 million of principal and interest payments coming due, Bloomberg News reported yesterday. “They’re waiting to see what the commonwealth does from here,” said Daniel Hanson, an analyst at Height Securities, a Washington, D.C.-based broker dealer. “They really want Puerto Rico to show some good will by paying bonds over the next six weeks.” Commonwealth general obligations maturing July 2035, the most-actively traded uninsured Puerto Rico bond in the past three months by volume, changed hands yesterday at an average of 71.3 cents on the dollar, compared with 71.7 cents on Friday, data compiled by Bloomberg show. Read more.
For more information on Puerto Rico’s debt crisis, be sure to view ABI’s “Puerto Rico in Distress” webpage.