Hedge Fund Holdings of Puerto Rico COFINA Debt Revealed In Court Filing

Jul 26 2017 | 8:31pm ET

Hedge fund exposure to Puerto Rican debt backed by the Commonwealth’s sales taxes was detailed in a U.S. federal court filing released late Tuesday, revealing $3.145 billion in holdings across 12 institutional entities.

The bonds, issued by Puerto Rico’s COFINA sales tax authority, are the subjects of key court proceedings related to the territory’s bankruptcy filing in May because unlike constitutionally guaranteed GO bonds, they are backed only by a portion of sales tax receipts and thus could face a different recovery rate.

Funds and total holdings (both senior and subordinate COFINA bonds) as listed in the filing:

  • Decagon Holdings LLC: $911.16 million
  • GoldenTree Asset Management LP: $528.54 million
  • Tilden Park Investment Master Fund LP: $465.02 million
  • Canyon Capital Advisors LLC: $303.08 million
  • Old Bellows Partners LP: $215.03 million
  • Whitebox Advisors LLC: $159.2 million
  • Taconic Capital Advisors LP: $154.34 million
  • Varde Partners Inc: $111.64 million 
  • Aristeia Capital LLC: $107.03 million 
  • Cyrus Capital Partners, LP: $93.11 million  
  • Scoggin Management LP: $60.31 million  
  • Merced Capital LP: $36.12 million  

Puerto Rico owes some $72 billion in debt, has a 42% poverty rate, dwindling population and insolvent public pension plans, according to Reuters. 

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