- 13 Mar 2014 at 10:15 AM
Prices on the U.S. territory’s bonds surged as much as 7.5% in heavy trading Wednesday, a day after hedge funds, mutual funds and other investors scrambled to get a piece of a $3.5 billion debt sale, Puerto Rico’s largest ever.
Buyers were enticed by generous potential returns—the bonds were priced to yield 8.73%, an unusually high level for a tax-exempt issue—and by the knowledge that other investors were lining up to get in on the deal. Barclays PLC, the bank leading the debt sale, tapped its larger corporate-bond salesforce to help pitch the Puerto Rico bonds to investors beyond just those traditionally interested in municipal debt. The banks involved received more than $16 billion in orders, and fund managers who got half the bonds they requested counted themselves lucky. Others received as little as 10% of what they had asked for.
- World's Greatest (Ex-) Banker Daughter Ties The Knot
- All JP Morgan Wants Is One Billion Dollars
- Bonus Watch '14: Babies Born In The Next 7.5 Hours
- Goldman Sachs Just Wants A Winner
- Ex-Analyst Gets Four Months For Every Person He Told About Thing He Wasn’t Supposed To Know About
- Bob Diamond's Daughter Releases Statement Re: Father's Firing
- Opening Bell: 10.21.14
- Opening Bell: 10.20.14
- Bonus Watch ’14: Goldman Sachs
- In Its Heart, UBS Is The Descendent Of German Jews Whose Art Was Seized By Nazis
- Executive Editor
- Bess Levin
How Can We Help You?
- Send tips to:
- For tech issues email:
- For advertising or events email:
- For research or custom solutions email:
- Dealbreaker is published by Breaking Media.
For a full list of our sites, services and staff visit breakingmedia.com