OppenheimerFunds Inc. and Franklin Advisers Inc. slashed their holdings of Puerto Rico bonds this year, taking advantage of a record rally in the price of the distressed island’s debt.
It marks the first major retreat for OppenheimerFunds, one of the biggest mutual-fund owners of Puerto Rico debt and a company that’s playing a major role in its bankruptcy. The firm decreased its holdings by nearly $1.6 billion by eliminating $610 million of sales-tax bonds, $376 million of electric utility debt, and $570 million of general-obligation bonds and other commonwealth-backed securities between Jan. 30 and Sept. 6, according to a court document filed late Tuesday.
