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Gundlach Sees Puerto Rico Like Mortgages in 2008 Crisis
“Puerto Rico muni bonds have priced in a lot of problems,” Gundlach said at the Sohn Investment Conference in New York on Monday, calling the securities “risky.” Gundlach said he feels “similar to how I felt about credit in 2008,” when he bought mortgage bonds from Wells Fargo & Co.
Holy jeepers. "Gundlach cited Puerto Rico’s 6.2 percent pension obligation bonds due in 2039, which are trading at 37.6 cents on the dollar to yield about 17 percent, according to prices compiled by Bloomberg.
“They’re priced for default yet are paying monthly,” he said."
Comments
"Gundlach cited Puerto Rico’s 6.2 percent pension obligation bonds due in 2039, which are trading at 37.6 cents on the dollar to yield about 17 percent, according to prices compiled by Bloomberg.
“They’re priced for default yet are paying monthly,” he said."