The trading prices of Puerto Rico bonds largely account for the losses investors will take when the island restructures its $70 billion debt, said Art Steinmetz, the chairman and chief executive officer of OppenheimerFunds Inc., a major holder of the island’s securities, Bloomberg News reported yesterday.
Puerto Rico in Distress
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A Puerto Rico labor union yesterday sued Governor Ricardo Rossello and the U.S. territory's financial oversight board, saying that pension cuts being proposed as part of the island's fiscal turnaround were unconstitutional, Reuters reported.
Bankruptcy for Puerto Rico is looking ever more likely as the clock ticks down toward a May 1 deadline to restructure $70 billion in debt, ramping up uncertainty for anyone betting on returns from the island's widely held U.S. municipal bonds, Reuters reported today. When U.S.
Thom Tillis (R-N.C.) and Tom Cotton (R- Ark.) sent a letter on Friday to José B. Carrión III, chairman of the Financial Oversight and Management Board for Puerto Rico, expressing concern that Puerto Rico’s fiscal plan fails to comply with the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA).