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Puerto Rico’s Bond Rally Has More Room to Run: Barclays

July 29, 2021, 9:47 PM

The Puerto Rico bond rally may continue this year as the island aims to complete its record bankruptcy by the end of 2021 and investors could recover as much as 96 cents on commonwealth-guaranteed debt, analysts at Barclays wrote in a report Thursday.

Puerto Rico is seeking to reduce nearly $19 billion of general obligation and Public Buildings Authority bonds by giving investors a $7 billion cash payment and $7.4 billion of new restructured debt. Bondholders would also receive a so-called contingent value instrument that would pay off if sales-tax receipts surpass budgeted forcasts.

Barclays estimates holders of general obligation ...

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