Puerto Rico Bonds Reach Two-Month High as House Passes Tax Bill
This article is for subscribers only.
Puerto Rico’s newest general-obligation bonds climbed to a two-month high after the island’s House of Representatives approved a sales-tax increase to help balance the fiscal 2016 budget.
Junk-rated commonwealth debt maturing in July 2035 traded Friday at an average price of about 83.3 cents on the dollar, the highest since March 19, according to data compiled by Bloomberg. That’s up from 79.13 cents May 13, the day before Governor Alejandro Garcia Padilla and lawmakers from his party agreed on a framework for the tax boost. The debt was issued in March 2014.