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Tag Archives: Puerto Rico

Aug 22, 2018

Puerto Rico Bonds: A Surging Force

After wreaking havoc on the municipal bond markets, Puerto Rico bonds have recently been adding value through their recovery. Bonds rallied after the latest debt restructuring deal was struck between the commonwealth and the bond holders. Additional supporting news, as mentioned in an article from Reuters,[1] was a federal court ruling affirming the budgetary powers…


Jan 1, 2017

Rieger Report: Municipal bonds in 2017?

A look back may be a telling way to view municipal bonds in 2017. The modest total return of the S&P Municipal Bond Index (0.77%) in 2016 masked an atypical year of volatility for the normally staid market place.  During the year, municipal bonds enjoyed being one of the ‘risk off’ asset classes and as low…


Oct 4, 2016

Rieger Report: High Yield Domination

High yield bonds have been marching along and putting up returns that are dominating the investment grade bond markets. U.S. junk bonds continue to have no stink to them as demand for yield far outweighs the supply and seemingly the credit risks associated with these bonds.   The bonds of larger entities tracked in the S&P 500…


Jul 22, 2016

Rieger Report: Muni G.O.’s or Revenue Bonds in 2016?

The debate over which sector of municipal bonds, general obligation bonds (G.O.’s) or revenue bonds can provide a better return is a constant one.  So far in 2016, the S&P Municipal Bond Revenue Index has outperformed verses the S&P Municipal Bond General Obligation Index. Peeling the onion back a bit may help provide more insights. In general, revenue…


Apr 7, 2016

Rieger Report: Puerto Rico bonds fall after moves to suspend debt payments

The governor of Puerto Rico has moved forward with a bill to suspend debt payments while looking for Washington to help.  The muni market reacted dragging the General Obligation bonds down further.  The S&P Municipal Bond Puerto Rico General Obligation Index has dropped over 3% in April so far and over 5.8% year-to-date. Municipal high yields…


Feb 25, 2016

Rieger Report: Puerto Rico Watch

Another way to track the impact of the storm that is Puerto Rico is to look at the municipal bond market in two ways: with and without Puerto Rico.  The new S&P Municipal Bond High Yield ex Puerto Rico Index excludes any bond issued by Puerto Rico.  Puerto Rico bonds are included in the S&P Municipal Bond High…


Jan 3, 2016

The Rieger Report: Municipal Bonds – In volatile markets boring did the job

The S&P Municipal Bond Index recorded a positive 3.32% total return in 2015 securing a second place finish among major asset classes.  Volatility plagued the equity and commodities markets which also tore into the corporate bond materials and energy sectors. While municipal bonds were steady throughout 2015 it had own challenges as Puerto Rico continues it’s seemingly endless financial…


Dec 23, 2015

The Rieger Report: Puerto Rico’s 2015 Impact- $7.5 billion

As the fiscal saga continues for Puerto Rico and it’s residents the impact has been crushing for the bond holders in 2015.  The total market value of bonds tracked in the S&P Municipal Bond Puerto Rico Index has fallen by over $7.5billion. Chart 1: Total Market Value of Bonds in the S&P Municipal Bond Puerto Rico Index…


Dec 6, 2015

The Rieger Report: Defaulted municipal bonds return -1.5% year-to-date

As the Puerto Rico municipal bond saga continues it may be helpful to look at how other distressed municipal bonds have performed through Friday December 4th 2015. The S&P Municipal Bond Default Index tracks municipal bonds that have entered default by not paying all or part of the promised principal or interest when due.  It currently tracks over…


Dec 3, 2015

Puerto Rico Municipal Bonds: The Damage Done…so far.

While the Puerto Rico municipal bond market saga continues the damage it has done has been significant.    Puerto Rico municipal bonds represent approximately 23% of the market value of the S&P Municipal Bond High Yield Index.  The impact on total returns of this segment of the market have been dramatic.  The table below illustrates the…


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