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Sep 2, 2015

Markets’ wild moves seen making U.S. public pension funds vulnerable

NEW YORK (Reuters) – Last week’s wild gyrations in global financial markets almost certainly exposed the vulnerability of U.S. state and local authority public pension funds which have piled into riskier assets in recent years, according to actuaries and other pension experts.

Based on data from the Federal Reserve, the funds are sitting on nearly $4 trillion in assets that are more than 70 percent exposed to equities and other riskier assets, such as commodities and hedge funds. And some states with massive pension funding deficits, such as Illinois, are likely most in danger of suffering big losses given their risk profiles.

Sep 1, 2015

Markets’ wild moves might make U.S. public pension funds vulnerable

NEW YORK (Reuters) – Last week’s wild gyrations in global financial markets almost certainly exposed the vulnerability of U.S. state and local authority public pension funds which have piled into riskier assets in recent years, according to actuaries and other pension experts.

Based on data from the Federal Reserve, the funds are sitting on nearly $4 trillion in assets that are more than 70 percent exposed to equities and other riskier assets, such as commodities and hedge funds. And some states with massive pension funding deficits, such as Illinois, are likely most in danger of suffering big losses given their risk profiles.

Aug 14, 2015

New York state’s pension assets slip after meager first-quarter returns

NEW YORK (Reuters) – Assets at New York state’s retirement fund, the third largest public pension fund in the nation, fell by $2 billion in the first quarter of its fiscal year as meager investment returns failed to keep pace with money paid out in benefits and fees.

The fund returned 0.52 percent during the quarter, which ended on June 30, but its estimated value dropped to $182.5 billion compared to a record $184.5 billion as of March 31, according to a report from the state’s comptroller on Friday.

Aug 14, 2015

New York state’s pension assets slip after meager Q1 returns

NEW YORK, Aug 14 (Reuters) – Assets at New York state’s
retirement fund, the third largest public pension fund in the
nation, fell by $2 billion in the first quarter of its fiscal
year as meager investment returns failed to keep pace with money
paid out in benefits and fees.

The fund returned 0.52 percent during the quarter, which
ended on June 30, but its estimated value dropped to $182.5
billion compared to a record $184.5 billion as of March 31,
according to a report from the state’s comptroller on Friday.

Aug 5, 2015

U.S. municipal bond insurers set to withstand Puerto Rico default

NEW YORK, August 5 (Reuters) – U.S. municipal bond insurers will likely weather any potential losses as a result of Puerto Rico’s debt crisis but a downgrade to their ratings or a loss of investor confidence longer-term could pose a serious challenge to their post-crisis recovery.

Bond insurers insure about $13 billion of Puerto Rico’s $72 billion debt load, substantially more than they did in Detroit which centered on a few hundred million dollars of city debt, meaning that losses for the insurers could be much higher.

Jul 16, 2015

Puerto Rico’s PFC did not transfer funds for bond payment -filing

NEW YORK, July 15 (Reuters) – Puerto Rico’s Public Finance
Corporation (PFC) failed to transfer funds to pay the principal
and interest on its bonds, according to the island’s bank and a
filing on Wednesday, highlighting cash problems as the island
tries to restructure its debt.

The transfer of $93.7 million was for a debt service payment
due Aug. 1 by PFC, part of the island’s Government Development
Bank.

Jul 15, 2015

U.S. senators introduce bankruptcy bill for Puerto Rico

NEW YORK (Reuters) – U.S. Democratic senators introduced on
Wednesday a bill to allow Puerto Rico’s public entities to file
for bankruptcy under federal laws as the U.S. territory starts
negotiations with creditors to restructure $72 billion in debt.

Puerto Rico’s public entities currently cannot make use of
Chapter 9 bankruptcy laws as entities in U.S. states can and
instead have to renegotiate their debts with creditors.

Jul 13, 2015

Puerto Rico urges creditors to avoid lawsuits over $72 bln debt

NEW YORK (Reuters) – Puerto Rico pleaded with creditors on
Monday not to engage in lengthy litigation over its $72 billion
debt, but provided little information about how a debt
restructuring would affect them.

At a packed meeting with bondholders at Citibank’s New York
offices, a clutch of the island’s top officials and advisors
again painted a bleak picture for the U.S. territory’s economy
and said fixing it would require pain to be shared by everyone
with a stake in its future.

Jul 13, 2015

Puerto Rico says turnaround requires sacrifice from all stakeholders

NEW YORK (Reuters) – The head of Puerto Rico’s government bank told creditors on Monday that a plan to turn around the island would require all stakeholders to make sacrifices and that a “contentious drawn-out” process would only hurt the commonwealth.

A working group created by Puerto Rico Governor Alejandro Garcia Padilla met creditors at Citibank’s offices on Monday, which an estimated 350 people were set to attend. The working group includes officials such as Victor Suarez, chief of staff in the governor’s office and Government Development Bank (GDB) head Melba Acosta.

Jul 13, 2015

Puerto Rico investors seek answers in Monday’s creditor meeting

NEW YORK, July 13 (Reuters) – Investors in Puerto Rico hope
to get specific information about how the commonwealth plans to
restructure debt when government officials meet with creditors
on Monday, but there are fears that any bungled messaging could
knock bond prices.

Puerto Rico Governor Alejandro Garcia Padilla dropped a
bombshell on holders of its $72 billion debt on Jun 29, saying
he wants to restructure debt and postpone bond payments.

    • About Edward

      "Ed Krudy leads a team covering the U.S. equity market from New York, where he has been since 2009. Prior to that he set up Thomson's new bureau in Budapest, where he initiated coverage of economic, political, market and company news."
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