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Apr 9, 2025

Guaynabo, Puerto Rico Bond Investors Will Soon Own Junk Bonds

We last wrote about UBS Puerto Rico, Santander Securities and Popular Securities brokers recommending that their Guaynabo, Puerto Rico clients get back into the Puerto Rico bond market and we warned you against doing so. We hope you listened because yesterday the Fitch Ratings agency said it may soon strip the heavily indebted Puerto Rico of its investment grade credit rating. Fitch Ratings threatened to tag the U.S. territory with junk bond status. Fitch Ratings said it had placed Puerto Rico’s BBB- General Obligation bond rating on negative watch, meaning it was considering a further reduction in the ratings to junk bond status. Undoubtedly, Puerto Rico bond prices will continue to fall, interest rates will continue to rise and the cost of issuing new debt in Puerto Rico will rise as well.

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Apr 9, 2025

Hato Rey, Puerto Rico Bond Investors Will Soon Own Junk Bonds

We last wrote about UBS Puerto Rico, Santander Securities and Popular Securities brokers recommending that their Hato Rey, Puerto Rico clients get back into the Puerto Rico bond market and we warned you against doing so. We hope you listened because yesterday the Fitch Ratings agency said it may soon strip the heavily indebted Puerto Rico of its investment grade credit rating. Fitch Ratings threatened to tag the U.S. territory with junk bond status. Fitch Ratings said it had placed Puerto Rico’s BBB- General Obligation bond rating on negative watch, meaning it was considering a further reduction in the ratings to junk bond status. Undoubtedly, Puerto Rico bond prices will continue to fall, interest rates will continue to rise and the cost of issuing new debt in Puerto Rico will rise as well.

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Apr 9, 2025

Mayaguez, Puerto Rico Bond Investors Will Soon Own Junk Bonds

We last wrote about UBS Puerto Rico, Santander Securities and Popular Securities brokers recommending that their Mayaguez, Puerto Rico clients get back into the Puerto Rico bond market and we warned you against doing so. We hope you listened because yesterday the Fitch Ratings agency said it may soon strip the heavily indebted Puerto Rico of its investment grade credit rating. Fitch Ratings threatened to tag the U.S. territory with junk bond status. Fitch Ratings said it had placed Puerto Rico’s BBB- General Obligation bond rating on negative watch, meaning it was considering a further reduction in the ratings to junk bond status. Undoubtedly, Puerto Rico bond prices will continue to fall, interest rates will continue to rise and the cost of issuing new debt in Puerto Rico will rise as well.

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Apr 9, 2025

Bayamon, Puerto Rico Bond Investors Will Soon Own Junk Bonds

We last wrote about UBS Puerto Rico, Santander Securities and Popular Securities brokers recommending that their Bayamon, Puerto Rico clients get back into the Puerto Rico bond market and we warned you against doing so. We hope you listened because yesterday the Fitch Ratings agency said it may soon strip the heavily indebted Puerto Rico of its investment grade credit rating. Fitch Ratings threatened to tag the U.S. territory with junk bond status. Fitch Ratings said it had placed Puerto Rico’s BBB- General Obligation bond rating on negative watch, meaning it was considering a further reduction in the ratings to junk bond status. Undoubtedly, Puerto Rico bond prices will continue to fall, interest rates will continue to rise and the cost of issuing new debt in Puerto Rico will rise as well.

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Apr 9, 2025

Ponce, Puerto Rico Bond Investors Will Soon Own Junk Bonds

We last wrote about UBS Puerto Rico, Santander Securities and Popular Securities brokers recommending that their Ponce, Puerto Rico clients get back into the Puerto Rico bond market and we warned you against doing so. We hope you listened because yesterday the Fitch Ratings agency said it may soon strip the heavily indebted Puerto Rico of its investment grade credit rating. Fitch Ratings threatened to tag the U.S. territory with junk bond status. Fitch Ratings said it had placed Puerto Rico’s BBB- General Obligation bond rating on negative watch, meaning it was considering a further reduction in the ratings to junk bond status. Undoubtedly, Puerto Rico bond prices will continue to fall, interest rates will continue to rise and the cost of issuing new debt in Puerto Rico will rise as well.

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Apr 9, 2025

San Juan, Puerto Rico Bond Investors Will Soon Own Junk Bonds

We last wrote about UBS Puerto Rico, Santander Securities and Popular Securities brokers recommending that their San Juan, Puerto Rico clients get back into the Puerto Rico bond market and we warned you against doing so. We hope you listened because yesterday the Fitch Ratings agency said it may soon strip the heavily indebted Puerto Rico of its investment grade credit rating. Fitch Ratings threatened to tag the U.S. territory with junk bond status. Fitch Ratings said it had placed Puerto Rico’s BBB- General Obligation bond rating on negative watch, meaning it was considering a further reduction in the ratings to junk bond status. Undoubtedly, Puerto Rico bond prices will continue to fall, interest rates will continue to rise and the cost of issuing new debt in Puerto Rico will rise as well.

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Apr 9, 2025

Bond Recovery For Guaynabo, Puerto Rico Investors? Not likely!

We hear that some financial advisors at UBS Puerto Rico, Santander Securities and Popular Securities in Guaynabo, Puerto Rico are calling their best clients and telling them that the Puerto Rico bond market hit its lows in September and that now is the time to buy. Not only are they telling their clients to buy, but to use margin and speculate on the bond market recovery. It’s true that most of the Net Asset Values (NAVs) on the UBS Puerto Rico Closed-End Bond Funds are off their September lows:

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Apr 9, 2025

Bond Recovery For Hato Rey, Puerto Rico Investors? Not likely!

We hear that some financial advisors at UBS Puerto Rico, Santander Securities and Popular Securities in Hato Rey, Puerto Rico are calling their best clients and telling them that the Puerto Rico bond market hit its lows in September and that now is the time to buy. Not only are they telling their clients to buy, but to use margin and speculate on the bond market recovery. It’s true that most of the Net Asset Values (NAVs) on the UBS Puerto Rico Closed-End Bond Funds are off their September lows:

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Apr 9, 2025

Puerto Rico Causing Franklin Double Tax-Free Income (FPRTX) Losses

The $460 million Franklin Double Tax-Free Income (FPRTX) has lost more than 13% year to date – 30% from May to September this year. This is due to its excessive concentration in Puerto Rico bonds. FPRTX reportedly has 60% or more of its portfolio holdings in Puerto Rican bonds. The Puerto Rican economy is struggling and its bond market is suffering disproportionately to other geographic areas. The S&P Municipal Bond Puerto Rico Index is down over 21% year to date whereas the S&P Municipal Bond Index is only down 2% year to date, a 19% difference!

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Apr 9, 2025

Puerto Rico Causing Oppenheimer Rochester Virginia Municipal Bond Fund (ORVAX) Losses

The $125 million Oppenheimer Rochester Virginia Municipal Bond Fund (ORVAX) has lost more than 15% this year. This is due to its excessive concentration in Puerto Rico bonds. ORVAX reportedly has 33% or more of its portfolio holdings in Puerto Rican debt. The Puerto Rican economy is struggling and its bond market is suffering disproportionately to other geographic areas. The S&P Municipal Bond Puerto Rico Index is down over 21% year to date whereas the S&P Municipal Bond Index is only down 2% year to date, a 19% difference! The Puerto Rico bond funds are the worst performers of all single-state municipal bond funds.

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