Puerto Rico's General-Obligation Bonds Rally as Default Averted
- Island will fail to pay $37 million of almost $1 billion owed
- Commonwealth will pay debt backed by constitutional guarantee
Inside Puerto Rico's $70 Billion Debt Crisis
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Puerto Rico’s general-obligation bonds rallied, with some yields falling to the lowest since July, after officials said the commonwealth would pay all that it owed on the constitutionally protected debt while missing payments on other securities.
The island’s benchmark general obligations issued in March 2014 with an 8 percent coupon traded Monday at an average 73.6 cents on the dollar, to yield 11.4 percent. It’s the highest price since Dec. 11. The yield on securities due in July 2041, the second-most-traded Puerto Rico obligations of the day, touched 9.3 percent, the lowest since July.