- 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.
- Juan Paulson No Longer Key To Puerto Rico’s Financial Survival March 13, 2014
- Metro North Rider Follows The 150 Second Rule July 29, 2014
- Morgan Stanley Has A Treat For Senior Junior Bankers July 29, 2014
- Let's Talk About: CFA Results July 29, 2014
- Wall Street Realizing That Argentina May Be Just As Irrational As It Seems July 29, 2014
- The Sky May Actually Be Falling July 29, 2014
- Local Man Wants Credit (And More) For Almost Selling Most Expensive House In U.S. History July 29, 2014
- UBS, Deutsche Bank Could Really Do Without All These Probes-Into-Possibly-Shady-Business Announcements July 29, 2014
- Ex-Harbinger COO Settles With SEC For Hitching Wagon To Falcone-Shaped Star July 29, 2014
- 07/28/14: The Greatest Day Of Bill Ackman's Life Thus Far July 28, 2014
- 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