Puerto Rico ‘Herd Mentality’ Hurts All Island Bonds, Amodeo Says

Not all municipal bonds from Puerto Rico are created equal, yet investors spooked by reports about the commonwealth’s fiscal health are treating them similarly, said Robert Amodeo, head of Western Asset Management Co.’s municipal group in New York.

Amodeo, whose company oversees about $30 billion in state and local debt, said he mainly invests in Puerto Rico sales-tax bonds, known as Cofinas, some of which Moody’s Investors Service rates Aa3, the fourth-best grade.