Which Puerto Rico Bond Defaults Next? A 1,600% Yield Says It All
- The market braces for new securities missing payments on May 1
- Island says it can't pay $422 million on development bank debt
QuickTake: Puerto Rico's Swelling Debt
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As far back as December, Puerto Rico Governor Alejandro Garcia Padilla warned that May would be the month when it could no longer pay bondholders. It’s almost here.
The commonwealth owes $470 million in payments on May 1, including $422 million on securities sold by its Government Development Bank, which has already frozen some deposits to preserve cash. Because May 1 falls on a Sunday, the island has until Monday to come through.