Puerto Rico Fails Without Washington Help, Morgan Stanley Says
- G.O. bondholders may get 8 percent internal rate of return
- Island seeks sovereign-like restructuring without such powers
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Puerto Rico’s attempt at a sovereign-like debt restructuring without complete lawmaking authority is likely to fall short in the absence of intervention by U.S. political leaders, according to Morgan Stanley.
“We doubt Puerto Rico’s ability to execute this style of restructuring without U.S. Congressional action, keeping us from adopting a clearly bullish position,” Michael Zezas, chief municipal strategist at Morgan Stanley in New York, wrote in a report dated Sept. 10.