While investors may be tempted by high yielding Puerto Rico bonds, they need to be "very, very careful," one muni bond pro told CNBC on Tuesday.
"Puerto Rico has a lot of issues," said Bob DiMella, co-head of MacKay Municipal Managers, which oversees $11 billion in municipal bonds, including $600 million in Puerto Rico backed debt.
"There's ways of investing in there but you have to be very active and understand the nuances of the credits."
Puerto Rico has been struggling with $73 billion in debt, and on Friday a federal judge voided a law that allowed the government to restructure certain debts. Puerto Rico has said it will appeal the ruling, saying it would leave the commonwealth in legal limbo and struggling to find a way to manage its debt load.
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"When you're talking about Puerto Rico general obligation bonds, you're talking about the high-yield marketplace, a distressed type of situation," DiMella said in an interview with "Power Lunch."
"Officials in San Juan need some type of restructuring ability."