Few who have followed the Caribbean island's financial troubles doubt that a massive restructuring is in its future.» Read More
The downgrade of Puerto Rican debt by the S&P is hitting many U.S. municipal bond investors. Hans Humes, Greylock Capital Management Chairman & CEO, provides insight.
NEW YORK, Feb 4- Standard& Poor's review of confidential information on Puerto Rico's finances led the ratings agency to make an unusually rapid downgrade of the U.S. commonwealth's debt, less than two weeks after warning the rating was at risk, its lead analyst said on Tuesday.
Feb 4- Standard& Poor's on Tuesday cut its credit rating on Puerto Rico, dropping the cash-strapped U.S. territory's debt to junk-bond status on concerns about its ability to access capital markets. Puerto Rico is one of the $3.7 trillion municipal bond market's biggest issuers, with some $70 billion of bonds outstanding.
NEW YORK, Feb 4- Standard& Poor's on Tuesday cut its credit rating on Puerto Rico, dropping the cash-strapped U.S. territory's debt to junk-bond status on concerns about its ability to access capital markets.
Feb 4- Standard& Poor's on Tuesday cut its credit rating on Puerto Rico, dropping the cash-strapped U.S. territory's debt to junk-bond status on concerns about its ability to access capital markets.
Detroit's bankruptcy is rapidly shaping up as a battle of Wall Street vs. Main Street, at least as far as the city's creditors are concerned.
After yanking a record $62.6 billion from muni bond funds in 2013, investors have redeployed cash to the sector in January, with more than $500 million over the past three weeks, Lipper data showed.
WASHINGTON, Jan 31- Leaders of U.S. cities and states criticized bank regulators' proposal to block banks from counting municipal debt toward buffers of easy-to-sell assets they will have to hold in case of a credit crunch.
NEW YORK, Jan 31- Detroit wants to pay the city's pension funds more than bankers and bondholders and to treat complex interest-rate debt it owes to two large Wall Street banks as unsecured debt, according to a report by the Detroit Free Press. Detroit needs to reduce some $18 billion in debt and long-term liabilities.
NEW YORK, Jan 29- Puerto Rico's Economic Activity Index for December will likely show further declines in business conditions, weak index component readings suggested, which would add to the growing unease over the cash-strapped island's weak financial and economic outlook.
Jan 29- Detroit on Wednesday sent its creditors a proposed plan for how it would adjust its more than $18 billion of debt and liabilities in order to emerge from municipal bankruptcy, the Detroit Free Press reported. A person familiar with Detroit Emergency Manager Kevyn Orr's plan told the newspaper the details will remain undisclosed under an order from U.S.
WASHINGTON, Jan 27- The compensation that dealers receive in U.S. municipal bond trades is once again in regulators' crosshairs, with a member of the Securities and Exchange Commission saying on Monday that he is investigating how to give investors more information about markups.
CNBC's Michelle Caruso-Cabrera looks at how Puerto Rico, an island with a population of 3.7 million, came to owe more than $70 billion. The government has raised taxes and cut pensions to help make up the shortfall.
Puerto Rico is in a struggle to borrow money—and it has to do it quickly if it wants to keep ratings agencies happy.
NEW YORK, Jan 22- Morgan Stanley, rebuffed late last year by Puerto Rico officials over an offer to arrange a high-cost loan of up to $2 billion for the cash-strapped commonwealth, is now trying to pique investor interest in backing the idea, according to people briefed on the matter.
The White House is not considering a financial bailout for Puerto Rico, an Obama administration official says.
WASHINGTON, Jan 22- The White House is not considering a financial bailout for Puerto Rico, where chronic fiscal challenges have raised the specter of a Detroit- like bankruptcy, an Obama administration official said on Wednesday. Puerto Rico already pays the highest interest rates of any big municipal bond issuer.
Larry McDonald, Newedge USA senior director, and Dan Loughran, Oppenheimer Funds, discuss the threat Puerto Rico poses to the $4 trillion U.S. muni bond market. CNBC's Michelle Caruso-Cabrera provides insight.
CNBC's Jeff Cox explains it could be a good year for municipal bonds, but the best strategy will be not to diversify, which is a little counterintuitive.
"You've got millions of kids involved, parents spending thousands, and cities building facilities," one expert said. "It's just huge."