Puerto Rico’s retirement system, on the brink of insolvency, is joining a lawsuit against UBS Group AG, faulting the company for poor investment returns on $3 billion it borrowed in an effort to bolster the pension, Bloomberg News reported yesterday. UBS underwrote bonds sold by the employees and judiciary retirement systems in 2008 and served as the investment consultant.
Puerto Rico in Distress
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Puerto Rico's newly created federal oversight board, charged with helping the U.S. commonwealth navigate through a crushing $70 billion debt burden, announced it will hold its first meeting in New York City on Friday, Reuters reported. The seven-member board, created by the U.S.
Puerto Rico bonds have outperformed U.S. stocks, corporate debt and every other corner of the municipal-securities market since the Caribbean island’s financial crisis precipitated an unprecedented federal takeover, Bloomberg News reported today. Yet investors still don’t know how much of what they’re owed they’ll get back.
Puerto Rico, which triggered the biggest default in the municipal-bond market by skipping nearly $1 billion of debt payments in July, is set to pay Millstein & Co. as much as $8.4 million in the next year to provide outside restructuring advice, Bloomberg News reported yesterday.