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Puerto Rico Bonds Trading at 95 Cents as Board Strikes Deals

July 22, 2021, 6:34 PM

Prices on some Puerto Rico bonds are trading at as much as 95 cents on the dollar, even as the bankrupt island plans to restructure the debt and may need to seek court action to do so absent support from the commonwealth’s legislature.

Puerto Rico general obligation bonds have been trading up in pricing this week after the island’s financial oversight board reached an agreement with a group of unsecured creditors and also a verbal pact with the two remaining insurance companies that had yet to reach a deal.

“It’s a combination of the hunt for yield right now, but ...

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