Puerto Rico Bonds Soar as Island Forecasts Swifter Recovery
- New plan sees six-year surplus of $6 billion before debt
- Most traded bond jumps by more than 20 percent Monday
A Tale of Two Puerto Ricos
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Puerto Rico bonds rallied, pushing the U.S. territory’s most-frequently traded security up by more than 20 percent, after it released a revised financial turnaround plan that projects budget surpluses over the next six years because of an influx of funds to help it rebuild from Hurricane Maria.
The price of its general-obligation bonds due in 2035 rose by 7 cents on the dollar to an average of 43.6 cents Monday, the highest since early October, after climbing as high as 45 cents, according to data compiled by Bloomberg. The prices of the territory’s sales-tax, electric company and building authority bonds also jumped in heavy volume.