NYC Pension Urges Hedge Funds to Ease Puerto Rico Crisis
- Civil employees' pension warns against `draconian' terms
- Letter comes week after mayor calls hedge funds `predators'
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New York City’s $53 billion civil-employees’ pension is urging its hedge funds and distressed debt managers that hold Puerto Rico bonds to “find a just and equitable solution” to the commonwealth’s debt crisis.
The New York City Employees’ Retirement System has assets managed by at least eight money managers that own pieces of the island’s $70 billion debt. As prices of Puerto Rico bonds plummeted and yields soared, hedge fund and distressed-debt buyers swooped in. They now hold as much as 30 percent of Puerto Rico’s securities, according to Barclays Plc.