Puerto Rico Bond Yields Reach Record High as Default Risks Mount
- Governor's spokesman says island may run out of cash for bonds
- Commonwealth risks first failure to pay direct debt on Dec. 1
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An index of Puerto Rico bond yields reached a record high this week as investors remain unsure whether they’ll be paid on Dec. 1 and lawmakers in Washington ponder extending a bankruptcy option to the cash-strapped commonwealth.
Ten-year Puerto Rico general obligations yield 12.3 percent, the highest since at least January 2013 and up from 10.1 percent on Oct. 20, data compiled by Bloomberg show. That’s 10.3 percentage points more than benchmark municipal bonds with the same maturity and equivalent to a 21.8 percent taxable interest rate for the highest earners.