Puerto Rico Bond Issuance Reduces Investor Fears

Puerto Rico’s announcement that it will raise financing through a general obligation bond issue has relaxed muni bond markets, and Sterne Agee analysts Todd L. Hagerman and Robert Greene who participated in the bi-annual Financial and Economic Forum in Puerto Rico sponsored by the Federal Home Loan Bank of New York (FHLBNY) expect Puerto Rico to raise enough money to keep the US territory liquid for the next two years. Bond issuance gives Puerto Rico two years of liquidity “We believe the issuance will sufficiently address liquidity needs over at least the next two years. A positive development for sure—a…