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Oppenheimer Funds Says Puerto Rico Can Pay Its Debts; Governor Says No

TedTed
in Fund Discussions
FYI: Puerto Rico's governor says the island's $72 billion debt load is too big to pay. OppenheimerFunds Inc., the largest mutual-fund holder of the bonds, disagrees.
Regards,
Ted
http://www.investmentnews.com/article/20150711/FREE/150719987?template=printart

Comments

  • Sven
    Ted posted earlier that Oppenheimer muni funds have significant exposure to Puerto Rico bonds, > 20%, while the more conservative Vanguard funds have less than much lower exposure. Vanguard High Yield Tax Free fund has the highest exposure at 1.5%. The more pertinent question is why and who should be responsible to the investors.

    There is no free lunch in investing. Juicing the yields have its consequences as Oppenheimer is facing today.
  • Old_JoeOld_Joe
    @Sven- yes, sounds like more chickens coming home to roost. Or maybe vultures? At least you can eat chickens!
  • beebee
    If already posted, my apologies, but "Treasure Island" has an ace in the hole:

    puerto-rico-new-age-tax-haven
  • Old_JoeOld_Joe
    @bee- I propose that MFO incorporate and that all of us become entitled to take advantage of the Puerto Rico deal. Maybe as long as each of us spent a couple of weeks there we could satisfy the residency requirements as an official MFO entity. I like it!
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