Puerto Rico Blues Puerto Rico’s Rolling Catastrophe
Puerto Rico bondholders are in for an unpleasant start to 2016 as the island announces that it will default on some of its debt payments due on New Years Day.
Puerto Rico Blues Puerto Rico Narrowly Avoids Default—Sort of
Puerto Rico managed to avoid complete default because of the creativity of its politicians and bankers, not because it suddenly discovered some extra cash or figured out how to balance its spreadsheets.
Puerto Rico Blues Time to Choose: Statehood or Independence
The U.S. Treasury is considering issuing Puerto Rico a “superbond,” which would give bondholders some security in exchange for taking a haircut. In the long term, however, Puerto Rico should be moving toward either statehood or independence.
Puerto Rico Blues Chapter Nine for Puerto Rico?
Puerto Rico needs to have any financial relief tightly tied to serious, far-reaching reforms. Blank check bankruptcy protection, such as the kind being floated by Governor Andrew Cuomo, just won’t do.
Puerto Rico Blues Puerto Rico’s Health Care Woes
Puerto Rico’s finances are already in crisis, but a looming cut to Medicare reimbursement rates might deepen the catastrophe.