Puerto Rico Bond Yields Surge as US Recession Fears Loom

Puerto Rico securities are poised for their worst performance in almost five years, despite the US commonwealth’s recent assurances of stability, as fears mount that the Federal Reserve’s aggressive interest rate hikes could tip the economy into a recession.

Debt sold by Puerto Rico and its agencies lost 14.6% this year, more than the 13% decline for the riskiest state and local debt, according to Bloomberg Index data. It’s headed for the biggest six-month drop since the second half of 2017, when Hurricane Maria slammed into Puerto Rico, just months after it entered bankruptcy. Puerto Rico is instep with ...