Saturday, 4 July 2015
Last updated 18 hours ago
Mar 13 2014 | 12:49pm ET
Puerto Rico spent months attempting to lure hedge funds to participate in a crucial debt offering—and did such a good job that it had to turn some away.
Hedge funds and others flocked to Wednesday’s $3.5 billion offering, Puerto Rico’s largest ever. And interest in the bonds continued after the deal, with prices surging both yesterday and today.
Puerto Rico’s underwriters received $16 billion in orders. Fund managers did well to get half of what they sought, The Wall Street Journal reports, while other investors got just 10% of what they ordered.
The U.S. territory has been struggling under a massive debt load, and was under pressure to show that it could still tap the credit markets. And while the 8.73% yield the new debt will pay is extremely high for municipal bonds, it is still less than the 10% or more that was rumored in January.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…