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Power Play: Will Puerto Rico impact other municipalities?

People shop in a store in San Juan, Puerto Rico, August 3, 2015.
Alvin Baez | Reuters
People shop in a store in San Juan, Puerto Rico, August 3, 2015.

Puerto Rico's first-ever bond default is raising concerns about investing in municipal bonds.

Kristina Hooper, U.S. investment strategist at Allianz Global Investors, tells CNBC's "Power Lunch" on Thursday the debt crisis in Puerto Rico shows no signs of being resolved.

Read MoreHere's why Puerto Rico's broke

"There really is no easy solution to a problem that has been snowballing for years. Puerto Rico's debt is widely held because its triple tax-exempt status is an attractive feature," Hooper said.

She is worried that trouble in Puerto Rico could stress other municipalities in the United States.

"Don't underestimate Puerto Rico's ability to rattle investors and the municipal bond market," Hooper said.