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Puerto Rico Bond-Trading Blitz Could Ease Path From Bankruptcy

Securities changing hands at fastest pace in three years
Those buying at record lows may be willing to settle for less

Bloomberg business news — Puerto Rico Governor on Recovery Efforts and Debt

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November 16, 2017, 4:04 PM UTC

Since Hurricane Maria struck Puerto Rico almost two months ago, investors have unloaded the island’s bonds at the fastest pace in three years, pushing prices to one new low after another.

The selloff caused at least a fifth of the government’s $12 billion of general-obligation bonds to change hands, a shift that could help hasten Puerto Rico’s emergence from its record-setting bankruptcy. That’s because those who bought near now record lows may be willing to settle for far less than hedge funds and others that rushed in before the financial collapse.