Gundlach Joins Lasry Scooping Up Puerto Rico Debt as Prices Fall
- Benchmark general obligations near lowest price since August
- Founders of DoubleLine, Avenue had already held island debt
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Even though Puerto Rico may be just weeks away from defaulting on some of its $70 billion of debt, a couple of the biggest names in the bond market are swooping in to buy its securities.
Jeffrey Gundlach of DoubleLine Capital LP and Avenue Capital Group’s Marc Lasry both said this week that they’re buying bonds from the commonwealth as prices take a new turn lower. Puerto Rico owes a combined $1.4 billion on those securities and others in the next six weeks, compared with just $209 million of payments since Sept. 1.