Puerto Rico’s newly issued $3.5 billion worth of 21-year duration bonds were sold only to ‘big boys’ who could pony up $100,000 minimum. Those hedge funds, Wall Street firms and primary dealers (banks) scooped up the whole batch at about 93-cents on the dollar.
A day or two later they off-loaded their stakes to the gullible public at prices as high as par (100-cents on the dollar of face value).
The suckers never learn. Barron’s reported today that the paper is now trading for less than its issue price.
