Puerto Rico Default Risk Defied With Rally: Muni Credit
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A potential restructuring of junk-rated Puerto Rico power bonds has failed to end the best rally in two years for the riskiest part of the $3.7 trillion municipal market.
With benchmark interest rates on city and state obligations close to the lowest in a generation, munis rated below investment grade are getting a boost from a 50 percent drop in issuance and the debt’s additional yield compared with corporate securities.