Puerto Rico Bonds Fall to Record Low as Debt Crisis Worsens

Puerto Rico bonds tumbled for a second day, extending the biggest selloff in at least two decades, after Governor Alejandro Garcia Padilla moved to restructure the junk-rated island’s $72 billion of debt to ease a fiscal crisis.

The commonwealth’s newest general obligations dropped 5 percent Tuesday to the lowest since they were first sold in March 2014. That followed a 6.5 percent decline for Puerto Rico securities Monday, the biggest one-day loss since at least 1998, according to J.R. Rieger, vice president of fixed-income indexes at Standard & Poor’s in New York.