Courtesy of Paul Price at Market Shadows
Puerto Rico Bonds Down 5% In First Month
Michael Aneiro of Barron's noted that Puerto Rico's recent bond offering has been worse than the stock market.
In fact the bonds have been trading today at levels that would mark a 5% loss for investors since Puerto Rico sold $3.5 Billion worth, one month ago.
The bonds now trade between 86 and 90 cents on the dollar. They were originally issued at a discounted face value of 93 cents on the dollar, but they found their way into individuals' hands as high as par the next day.
A yield of 8.727% at the original issue price is now up to about 9.3% at today's quote.
See also:
Ignorance Can be Better than Bliss
Mom and Pop- Duped Again: Puerto Rican Bond Update
