Junk Debt Defies Puerto Rico in Best Gain Since ’09: Muni Credit
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The riskiest part of the municipal-bond market is off to its best annual start in five years as Puerto Rico’s record $3.5 billion junk deal leaves demand for higher-yielding securities unslaked.
Tax-exempt local debt ranked below investment grade or lacking a rating has gained 6.2 percent this year through March 17, beating the broader market’s 3.6 percent advance, according to S&P Dow Jones Indices. Similarly rated company bonds have earned 2.7 percent, Bank of America Merrill Lynch data show.