The Rieger Report: Puerto Rico – a 22% Weight on the High Yield Muni Market

As the Puerto Rico saga continues it has created a drag on the high yield municipal bond market.

The weight of Puerto Rico debt in the market place as measured the market value of bonds in select indices as of September 29, 2015:

The impact of Puerto Rico on year-to-date returns through that period is:

  • S&P Municipal Bond High Yield Index (Excluding Puerto Rico bonds): 4.42%
  • S&P Municipal Bond High Yield Index (Including Puerto Rico bonds):  0.89%

The expectations of defaults, creditor negotiations, and the uncertainty of legislation changes all make the situation fluid for the bond holders.

Learn more!  Join us on-line Wednesday October 28th as we live stream the complimentary 4th Annual Municipal and Global Bond Forum.  Click here for the agenda.

 

The posts on this blog are opinions, not advice. Please read our disclaimers.

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