Puerto Rico is seeking to reduce $74 billion of debt, but Federal housing bonds may be paid in full. Thanks to the US Department of Housing and Urban Development (HUD).
(Bloomberg) – While Puerto Rico and its agencies seek to reduce $74 billion of debt in a record bankruptcy, commonwealth bonds repaid with federal housing money and tobacco settlement funds may dodge a restructuring, according to Moody’s Investors Service.
After Puerto Rico first began defaulting on its obligations two years ago, a federal oversight board on May 3 sought for the commonwealth a form of bankruptcy called Title III. There are six entities remaining that have yet to miss payments to investors. Of those, debt sold by Puerto Rico’s Housing Finance Authority and the Children’s Trust Fund may avoid asking bondholders to accept losses on their securities, Ted Hampton, a Moody’s analyst, wrote in an Aug. 9 report.
This post was published at Wall Street Examiner on August 10, 2017.