The clock is ticking on Puerto Rican debt restructuring, with a February deadline looming and the potential for variable investor haircuts – potentially as high as 50% to 60% — being considered, according to a source involved in the negotiations. The silver lining for investors may be the issuance of GDP-linked bonds that provide investors a higher return correlated to the island’s economic success. A February deadline looms on Puerto Rican debt With nearly $70 billion in government debt, Puerto Rico, an unincorporated US territory, owes creditors more than $19,000 per citizen. With a declining population, 45% of which is under…
Puerto Rican Debt Investors Could Take 50% Haircut
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.