Tag Archives: Bonds

Under Water in the Caribbean

Puerto Rico

By all accounts, Puerto Rico is a beautiful, sunny place to visit, especially in the Winter. But it’s hard to fathom how this U.S. island territory of 3.5 million people could have racked up $70 billion in public debt—roughly $20,000 per citizen, which happens to be almost exactly the population’s average yearly income. Now that Puerto Rican bonds are trading at 20-50 cents on the dollar, a lot of people are starting to wonder what happened.

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