Last week Puerto Rico passed a restructuring law that caused an immediate downgrade to it's debt from all three of the major rating services. Moody's Investors Service cut the Puerto Rican bonds three notches from a Ba2 to a B2. This leaves the bonds five notches below investment grade. The bonds which are backed by […]

UBS of Puerto Rico is allegedly under investigation for fraud by the Securities and Exchange Commission (SEC) and the U.S. Department of Justice. UBS, a Swiss bank, has had huge losses by its wealth management clients over the past few years causing a multitude of lawsuits. These lawsuits are claiming that allegedly UBS extended credit […]

The Financial Industry Regulatory Authority (FINRA) has said that it is examining the trading in the $3.5 billion of general-obligations that Puerto Rico sold this month in the largest ever high yield offering. These bonds are clearly not for the small investor. Puerto Rico sold the debt on March 11th., giving the island enough cash […]

Puerto Rico used to be known as a tax haven for investors. However, Puerto Rico is experiencing huge financial problems that could easily cost American investors a large portion of their investments, particularly if the island goes bankrupt. Puerto Rico went through an over-borrowing spree in the past few decades. This small island managed to […]

Puerto Rican bond market is struggling. In a recent article in Morningstar, Eric Jacobson writes that things began to deteriorate before the 2008 financial crisis, due to a 2006 tax-benefit expiration which resulted in manufacturers leaving the island. The difficulties have only worsened since then. Many U.S. investors assume they're immune to the troubles because […]

Puerto Rican bond market is struggling. In a recent article in Morningstar, Eric Jacobson writes that things began to deteriorate before the 2008 financial crisis, due to a 2006 tax-benefit expiration which resulted in manufacturers leaving the island. The difficulties have only worsened since then. Many U.S. investors assume they're immune to the troubles because […]