Description: Puerto Rico is expected to sell roughly $3 billion in bonds on Tuesday at interest rates that are considerably lower than many investors in the municipal market had expected, providing a rare bright spot for the cash-squeezed island.

Source: NYTimes.com

Date: Mar 10, 2014

Link: http://dealbook.nytimes.com/2014/03/10/puerto-rico-gets-a-break-with-rates-on-its-bonds/?ref=economy

Questions for discussion:

• What are the concerns to Puerto Rico bondholders?
• Are the current rate offerings “good enough” to cover the risk, in your opinion?