The massive market transformation this month that some on Wall Street called a "once in a decade opportunity" might have just been a one-off technical move because of taxes.Marketsread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
CNBC did a deep dive through the most recent Wall Street research to find stocks that analysts say are underappreciated.Marketsread more
Shares of MasterCard are up 46% this year, and 1120% since 2011, getting a boost from the strong U.S. consumer.Investingread more
CNBC sat in on an "empathy training" at Amazon PillPack's Somerville offices, which is part of new hire orientation.Technologyread more
Trade with China is the 'big unknown' for the Federal Reserve as it decides how best to support the U.S. economy, says Council on Foreign Relations Director of International...Futures Nowread more
Lobbying experts said the visit is likely an attempt to be in lawmakers' ears as they consider legislation that would impact Facebook.Technologyread more
Yardeni Research's Edward Yardeni believes the U.S. economy is picking up steam.Trading Nationread more
Iran's audacious drone and cruise missile attack on Saudi Arabia's oil producing facilities has provided a critical test yet for the Trump administration's foreign policy. A...Politicsread more
Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Representatives of the government of Puerto Rico talked to investors Tuesday afternoon, as the U.S. commonwealth tried to assuage market concerns about its ability to repay its massive debt load.
The governor of Puerto Rico told investors, "We will do everything to honor all our commitments."
The comment was the beginning of what was expected to be an up to three-hour presentation, with 75 PowerPoint slides, all designed to calm investor worries.
The island has more than $70 billion in debt, much of which has fallen in value as investor concerns have grown. As part of the presentation, the government announced its budget deficit for fiscal year 2014 is expected to be $820 million, down from a preliminary estimate of $1.29 billion in 2013, and $2.38 billion in 2012.
The government also said it plans to raise an additional $500 million to $1.2 billion during the remainder of this year, subject to market conditions, but that the Government Development Bank has "the financial flexibility" to adjust the financing plan. The Government Development Bank serves as a fiscal agent and financial advisor for the commonwealth.
Impact for American investors
The island's economy, meanwhile, has been closed to the capital markets as investors have demanded high interest payments before lending to Puerto Rico again.
The "so what?" here for Americans investors is that more than 75 percent of U.S. municipal bond funds own debt from Puerto Rico, according to Morningstar. The pervasiveness of the island's debt stems from its "triple exemption" status.
Interest payments received from Puerto Rico are not subject to federal, state or local taxes. That's why investors have been willing to lend the island roughly $70 billion, even though its economy is only about $100 billion.
Puerto Rico also is actively traded among high-yield investors, many of which are hedge funds, because there are so few places to find high yields. Some of Puerto Rico's debt is yielding nearly 9 percent tax-free.
The government recently has been trying to repair its budget by raising taxes and cutting pension costs. The U.S. commonwealth has been in a recession since 2006.
—By CNBC's Michelle Caruso-Cabrera. Follow her on Twitter: @MCaruso_Cabrera
This story has been updated to correct when the island fell into a recession.