Municipal Bond Forum
Insured vs. uninsured Puerto Rico bonds
Q
With regard to the fiscal situation in Puerto Rico, do you believe there will be any difference between Puerto Rico municipal bonds that are insured and those that are not?
A
James A. Klotz responds:
Municipal market participants apply a clear and distinct premium to the value of insured Puerto Rico bonds.
The rating agencies have recently affirmed the ability of Assured Guaranty (AGM) and National Public Finance Guarantee Corporation to cover any claims arising from the default or restructuring of any Puerto Rico governmental entity.
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