NY Times article today detailing Puerto Rico's 72 billion dollar debt crisis.
"It is estimated that 75 percent of the mutual funds tracked by Morningstar now hold at least some Puerto Rico debt."
Puerto Rico's governor announced they can't repay it. I have no doubt they will restructure the debt but anyone who has paid attention knows it is a house of cards. They are borrowing to service debt which is as bad a sign as can be.
Dare I say it? could it be the bond funds don't represent the safety most believe they do. When does the debt become like lead in your lifeboat?
California $617.6 billion
New York $300.1 billion
Texas $287 billion
New Jersey $282.4 billion,
Illinois, with $271.1 billion
Sent from my iPad using Early Retirement Forum.
"It is estimated that 75 percent of the mutual funds tracked by Morningstar now hold at least some Puerto Rico debt."
Puerto Rico's governor announced they can't repay it. I have no doubt they will restructure the debt but anyone who has paid attention knows it is a house of cards. They are borrowing to service debt which is as bad a sign as can be.
Dare I say it? could it be the bond funds don't represent the safety most believe they do. When does the debt become like lead in your lifeboat?
California $617.6 billion
New York $300.1 billion
Texas $287 billion
New Jersey $282.4 billion,
Illinois, with $271.1 billion
Sent from my iPad using Early Retirement Forum.
Last edited: