Two years ago, almost to the day, I wrote about the Puerto Rican debt crisis and how mutual funds had foolishly loaded up on high-yielding, risky Puerto Rican debt. Thus investors who thought they owned, say, Virginia municipal bonds, actually had 50% or more of their assets in Puerto Rican ...
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Here are some more bracing statistics, via Randall Forsyth at Barron’s, about just how crazy Puerto Rico’s borrowing has been. The island’s tax-free and relatively high yields have resulted in its debt comprising a wildly disproportionate share of the long-term municipal ...
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After the market close the other day Moody’s downgraded Puerto Rico’s municipal debt by three notches, lowering its estimation of the island’s bonds to junk status. I wrote about the Puerto Rican debt crisis last year in December. Puerto Rico’s risky municipal debt ...
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It takes about $25,000 to buy corporate or municipal bonds in a lot that is able to secure a reasonable commission. Bonds purchased in smaller amounts incur excessive brokerage fees. For investors who don’t have enough money to purchase individual bonds efficiently, bond mutual funds (and ...
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