Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
TRP Junk bond fund. PRCPX. One particular holding is listed as: PUERTO RICO COMWLTH 0.00001% .... Obviously a Muni. Zero yield. WTF? Is it a zero coupon animal?
Best guess (based on annual statement calling this GO VR with maturity 11/1/43) is CUSIP 74514L3T2. The GO means General Obligation; I'm guessing that TRP used VR to mean variable rate. It's actually a CVIS.
That's a really funky type of bond. A few years ago I helped someone who held this specific bond with their taxes. Not going to revisit.
contingent value instruments ... only repay if sales-tax revenue collections surpass budgeted estimates. The CVIs are taxable and do not carry interest.
Comments
That's a really funky type of bond. A few years ago I helped someone who held this specific bond with their taxes. Not going to revisit.
Quick Bloomberg summary: