EiC, Markets and Economics, New York
Tiziana's Feed
Oct 16, 2013

Puerto Rico will do what it takes to honor debts

NEW YORK (Reuters) – Puerto Rico will do whatever it takes to honor its debt, Governor Alejandro Garcia Padilla said on Tuesday, as local officials tried to reassure investors the U.S. territory can and will meet its obligations after a jump in yields shut it out of capital markets.

A host of officials from the Government Development Bank (GDB), the departments of treasury and economic development, the budget office, and others joined Padilla in a wide-ranging call with investors that lasted nearly two and a half hours. The message: Puerto Rico is not going to default on its debt.

Sep 27, 2013

Puerto Rico’s fat yields luring hedge funds, distressed buyers

Sept 27 (Reuters) – Puerto Rico’s municipal tax-free bonds
yields are luring a new class of buyers: hedge funds and
distressed debt investors betting the Caribbean island will keep
servicing its massive debt.

Trading volumes in Puerto Rico general obligation bonds,
which are rated barely investment grade and may tumble into
junk-bond territory, spiked in mid-September. Yields jumped for
a few trading days above the magic number of 10 percent and
prompted Puerto Rico finance officials to scale back their 2013
schedule of planned muni market sales.

Sep 10, 2013

Puerto Rico cuts planned debt sales after bond sell-off

Sept 10 (Reuters) – A day after a Puerto Rico bond sell-off
pushed yields above 10 percent, the Government Development Bank
said on Tuesday it is scaling back bond sales planned for the
rest of 2013.

The GDB, which sells bonds for the Caribbean island, its
agencies and local governments, said it will cut back planned
debt issuance to between $500 million and $1.2 billion because
of current market conditions and recent private transactions.

Jul 25, 2013

Analysis: History offers few happy endings for Detroit to follow

MIAMI/NEW YORK (Reuters) – Detroit officials hope the bruising bankruptcy battle ahead of them will be rewarded with the birth of a leaner, more efficient and ultimately prosperous Motown.

History, however, has few story book endings to offer as a guide when it comes to U.S. municipal bankruptcies.

Jul 25, 2013

History offers few happy endings for Detroit to follow

MIAMI/NEW YORK, July 25 (Reuters) – Detroit officials hope
the bruising bankruptcy battle ahead of them will be rewarded
with the birth of a leaner, more efficient and ultimately
prosperous Motown.

History, however, has few story book endings to offer as a
guide when it comes to U.S. municipal bankruptcies.

Jul 20, 2013

Analysis: Detroit filing sends benefits’ warning to other cities

NEW YORK (Reuters) – Many U.S. cities have a much better economic outlook than struggling Detroit, but the Motor City’s bankruptcy filing on Thursday should still set off alarm bells elsewhere as the cost of paying retirement benefits swells.

In recent decades, many municipalities have provided their workers with generous retirement benefits, both pensions and health coverage, often in lieu of pay increases. But this has created an unsustainable future burden for budgets that has only been exacerbated by the loss of real estate and other tax revenue in the financial crisis.

Jul 20, 2013

Detroit filing sends benefits’ warning to other cities

NEW YORK, July 20 (Reuters) – Many U.S. cities have a much
better economic outlook than struggling Detroit, but the Motor
City’s bankruptcy filing on Thursday should still set off alarm
bells elsewhere as the cost of paying retirement benefits
swells.

In recent decades, many municipalities have provided their
workers with generous retirement benefits, both pensions and
health coverage, often in lieu of pay increases. But this has
created an unsustainable future burden for budgets that has only
been exacerbated by the loss of real estate and other tax
revenue in the financial crisis.

Jun 25, 2013

Analysis: Puerto Rico – a vacation oasis overrun with high debt

By Tiziana Barghini and Michael Connor

(Reuters) – Puerto Rico’s turquoise Caribbean waters lap white sandy beaches under year-round sun, making the island a safe place to relax.

But beyond its shoreline, U.S. investors see a threatening view, a tropical version of a near-bankrupt industrial city – Detroit, whose stressed finances are run by a state-appointed manager.

Jun 25, 2013

Analysis: Puerto Rico – Vacation oasis, muni-market trouble spot

By Tiziana Barghini and Michael Connor

(Reuters) – Puerto Rico’s turquoise Caribbean waters lap white sandy beaches under year-round sun, making the island a safe place to relax.

But beyond its shoreline, U.S. investors see a threatening view, a tropical version of a near-bankrupt industrial city – Detroit, whose stressed finances are run by a state-appointed manager.

Jun 25, 2013

Puerto Rico: Vacation oasis, muni-market trouble spot

June 25 (Reuters) – Puerto Rico’s turquoise Caribbean waters
lap white sandy beaches under year-round sun, making the island
a safe place to relax.

But beyond its shoreline, U.S. investors see a threatening
view, a tropical version of a near-bankrupt industrial city -
Detroit, whose stressed finances are run by a state-appointed
manager.