Saturday, February 1, 2014

[DONDEQUIERA] Puerto Rico Vanishes from the S&P 500

Well it might not actually be an example of vanishing wealth, in January, Puerto Rico bonds facing possible junk ratings were pulled from the S&P National AMT-Free Municipal Bond Index.  Standards and Poor claimed the decision was because of [Puerto Rico]s debt's outsized yields and spotty liquidity.

Bottom line, S&P just made it harder to keep our bond industry from crashing and burning.   The policy shift, announced Jan. 8 and effective last Friday, raises worries that demand for Puerto Rico debt from investors tracking the index will soften when the Caribbean island is readying a bond sale or other possible financing.

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Publicado por Blogger en DONDEQUIERA el 2/01/2014 08:19:00 p. m.

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