The volume of trading for Puerto Rico debt is at the highest in at least three years as the island seeks as much as $21 billion in aid to help keep the government operating and paying public employees after Hurricane Maria slammed into the island in September.
The trailing 30-day daily average of commonwealth securities traded reached $423.3 million on Monday, the highest since at least September 2014, according to data compiled by Bloomberg. It was $422.7 million on Tuesday.
- Puerto Rico general obligations with an 8 percent coupon and maturing in 2035 traded Tuesday at an average of 27.5 cents on the dollar, near the record-low of 27.4 cents seen Oct. 25, according to data compiled by Bloomberg. The debt first sold in March 2014 at 93 cents on the dollar
- An index of commonwealth securities has lost 16.8 percent this year through Nov. 7, the biggest decline since at least 2000, according to S&P Dow Jones Indices. The broader municipal-bond market gained about 5 percent during that time while high-yield tax-exempt debt advanced 4.6 percent
- A group of hedge funds investing in the island’s general-obligation bonds decreased their holdings of such debt to $2.1 billion, as of Nov. 1, down from $3.3 billion on July 12, according to court documents filed last week
- Puerto Rico needs $13 billion to $21 billion over the next two years to meet payroll and keep the government running, Natalie Jaresko, the executive director of the island’s federal oversight board, said Tuesday during a Congressional hearing about Puerto Rico’s recovery after Hurricane Maria
Bloomberg Markets
By Michelle Kaske
November 8, 2017, 7:32 AM PST