Hedge Funds Flock To Puerto Rico Debt

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...