Puerto Rico Rebound Lures Mutual Funds Back to Island's Bonds
- Pimco, AllianceBernstein have boosted holdings since hurricane
- Once big buyers, mutual funds sold when fiscal crisis worsened
Photographer: Christopher Gregory/Bloomberg
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Traditional bond buyers are going back to Puerto Rico.
After shunning the U.S. territory for much of the past six years, municipal-bond mutual funds are again buying the government’s debt as it recovers from the 2017 hurricane and inches closer to winning a potential court approval to restructure more than $17 billion of sales-tax-backed debt, a major step in its record-setting bankruptcy.