Puerto Rico Yield Penalty Doubles as Island’s Economy Shrinks
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The extra yield on Puerto Rico general-obligation bonds has doubled in the past four weeks as its economy in July shrank the most in 41 months.
Puerto Rico bonds maturing July 2040 and rated one step above junk traded today with yields as high as 10.08 percent, the highest this year, data compiled by Bloomberg show. The average yield, 9.59 percent, is 4.83 percentage points more than top-rated munis with similar maturity. That’s twice the lowest spread this year, on Aug. 6.