How To Make Money From Puerto Rico's Debt Crisis

Summary

Publicly available research shows that the over the last 45 days there have been 23,931 Puerto Rico bond purchases and 33,816 sales.

About 70% of public municipal bond funds held some level of Puerto Rico bonds as of Feb. 2014.

Puerto Rico issues hundreds of different types of bonds. They have varying degrees of credit quality and risks. Many have become mispriced because of the company they keep.

Some short-dated university bonds are showing a yield to worst (the lowest an investor expect) of 100% while trading for 49 cents on the dollar.

There are plenty of Puerto Rico bonds backed by sales-tax listed below trading as much as 40% below real value.

Is Puerto Rico America's Greece?

This article shows how to easily research and identify potential investment opportunities amidst the rubble of the $72 billion Puerto Rico municipal bond marketplace. Make no mistake there is plenty of risk in the Puerto Rico bond market. So buyer beware. But in October 2015 there was news of a potential game changing white knight in the form of the U.S. Treasury Department, which was said to be floating the idea of issuing a "Super bond" to help restructure the commonwealth's debts. There are two views of Super bond proposal:

Robert Kane

How To Make Money From Puerto Rico's Debt Crisis