Municipal Bond Forum
Opportunities for those who do their homework
Q
Everybody is dumping Puerto Rico bonds because 13.5% unemployment is so high. Thus, people are moving out of Puerto Rico and it is declining in population. Don’t you think this could be dangerous for investors?
A
James A. Klotz responds:
Of course we do. We have made this clear in a number of our articles and commentaries.
Our article, “Herd Mentality Yields Unique Value,” pertained to a positive report by Standard & Poor’s regarding two of the insurance companies and their ability to pay investors if a worst-case scenario for Puerto Rico did unfold.
Perspective is important. Often, unfavorable news leads many investors to panic and “throw the baby out with the bathwater,” which in turn creates opportunities for those who do their homework.
Start here.
Do you have specific criteria for bonds you’re looking for? Let us know and we’ll e-mail you bonds that fit your needs. There is no charge for this service.
This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.