Puerto Rico’s general-obligation bonds rallied, with some yields falling to the lowest since July, after officials said the commonwealth would pay all that it owed on the constitutionally protected debt while missing payments on other securities, Bloomberg News reported yesterday.
Puerto Rico in Distress
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Puerto Rico’s population loss accelerated last year, a troubling sign for an island facing a severe fiscal crisis and a recession entering its 10th year, the Wall Street Journal reported today. The island’s governor said last week that the U.S. territory would make most of roughly $1 billion in debt payments due Jan. 1, largely as it borrows from reserve accounts.
Puerto Rico will default on a portion of the nearly $1 billion in debt obligations due to its bondholders on Jan. 4, CNBC.com reported yesterday. Top officials for the commonwealth have confirmed that it will not be able to make two out of the 13 total payments due Monday to bondholders.
Running out of both time and money, debt-ridden Puerto Rico appears headed for default on at least some of the roughly $1 billion in bond payments that are due on Jan. 1, the New York Times reported today.