Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Summers Sees Low Market Confidence in Puerto Rico Bonds

Nov. 7 (Bloomberg) -- Former U.S. Treasury Secretary Lawrence Summers said financial markets show a lack of confidence in Puerto Rico’s economy, with its bonds trading as the “junkiest of the junk.”

“There are profoundly serious financial issues facing Puerto Rico right now,” Summers said today at the Continuity Forum in Miami Beach, Florida. “How that’s resolved is a very important question for North America and for the Puerto Rican community.”

Yields on Puerto Rican bonds maturing in 2041 climbed to as much as 10.2 percent in September before falling to about 7.7 percent this week. The commonwealth’s bonds are widely held in the $3.7 trillion municipal bond market because of their exemption from local, state and U.S. federal taxes.

The commonwealth took in $865 million in revenue in October, about 15 percent more than forecast, on higher corporate-tax receipts, Treasury Secretary Melba Acosta said in a Nov. 4 statement.

A default by Puerto Rico, which is rated one level above junk status, is unlikely since its constitution gives priority to general obligation bond payments over government spending, Acosta said yesterday at the Bloomberg Link State & Municipal Finance Conference in New York.

To contact the reporter on this story: Bill Faries in Miami at

To contact the editor responsible for this story: James L Tyson at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.