Puerto Rico

Puerto Rico Takes First Steps Toward Bankruptcy-ish Filing

After what has been the slowest of slow-motion train wrecks, Puerto Rico’s federal overseers have finally taken the inevitable first step toward considering the use of bankruptcy-ish proceedings, known as Title III, to allow the island to escape it's $70 billion debt burden. 

Frontrunning: April 12

  • Futures flat as geopolitical risks weigh; earnings eyed (Reuters)
  • Brent oil rises for 8th day on possible extension to supply cut (Reuters)
  • U.S. accuses Russia of Syria gas attack 'cover up' (Reuters)
  • Xi Tells Trump China Wants Peaceful North Korea Solution (WSJ)
  • Tillerson, Lavrov Hold Talks in Moscow Amid Rising Tensions Over Syria (WSJ)

Is Bankruptcy For Illinois The Answer?

Could a formal bankruptcy proceeding for the State of Illinois be the answer to it’s fiscal crisis? If you think that’s out of the question, as many do, you’re wrong.

Muni Massacre - Puerto Rico Bonds Plunge Near Record Lows

The last 5 days have seen the biggest crash in Puerto Rico muni bonds since June 2015 when the Governor declared debts "unpayable." As Bloomberg notes, investor speculation about the scale of the losses Puerto Rico will foist on bondholders caused the price of the island’s most active bond to continue to slide in the heaviest trading in nearly four months.

Puerto Rico Bonds Are Plunging Again

Puerto Rico bonds are in the midst of the biggest three-day rout since April 2016, when island officials advanced a moratorium bill that paved the way for the first default on its general-obligation debt.

Frontrunning: January 24

  • Dollar steadies after stumble, sterling rides out Brexit ruling (Reuters)
  • After U.S. exit, Asian nations try to save TPP trade deal (Reuters)
  • U.K. Court Rules Brexit Trigger Needs Parliamentary Vote (BBG)
  • Brexit plans unlikely to be slowed by Article 50 defeat (Reuters)
  • Health Secretary Nominee Proposed Bill Benefiting Puerto Rico Investments (WSJ)

The Dallas Pension Fiasco Is Just The Beginning

The recent blow-up of the Dallas Police and Fire Pension System was entirely predictable. The combination of overpriced financial markets, inadequate contributions and overly generous pension promises mean dozens of US local and state government pension plans will end up in the same situation.