Desperate for yield? (not for the faint of heart)
Posted: Sun Sep 22, 2013 2:19 pm
Puerto Rican municipal bonds are offering some of the best yields in the bond market and they are triple tax exempt. BUT....
Our little island colony has a lot of financial problems. I don't see PR as a tropical version of Detroit (for one thing they can't declare bankruptcy), but they are in worse shape than any of the 50 states. On the upside, unlike Detroit and Illinois the government of PR seems to actually be serious about dealing with its debt problem. Even so this is not where I would put money you can't afford to lose.
A Google search will produce a ton of stories on PR bonds and the recent spike in their yields to near 10%.
Disclaimer: I do not own any Puerto Rican Bonds, and am not endorsing them. Do your own due diligence... Caveat Emptor
Our little island colony has a lot of financial problems. I don't see PR as a tropical version of Detroit (for one thing they can't declare bankruptcy), but they are in worse shape than any of the 50 states. On the upside, unlike Detroit and Illinois the government of PR seems to actually be serious about dealing with its debt problem. Even so this is not where I would put money you can't afford to lose.
A Google search will produce a ton of stories on PR bonds and the recent spike in their yields to near 10%.
Disclaimer: I do not own any Puerto Rican Bonds, and am not endorsing them. Do your own due diligence... Caveat Emptor