Puerto Rico Teaches OppenheimerFunds Perils of Hunting for Yield
- Ten of 20 muni funds hold at least 15% stakes in island debt
- Nine of those are in bottom 10 percentile versus peers in 2015
This article is for subscribers only.
Puerto Rico had a strategy over the past decade to paper over its deficits: Issue billions of dollars worth of tax-free municipal bonds.
OppenheimerFunds Inc. had a strategy over the same period to deliver outsized returns to its muni mutual-fund shareholders: Buy billions of dollars worth of the commonwealth’s high-yielding debt.