Puerto Rico’s Investors Uneasy Over Bonds
It was a safe haven. As the island territory’s debt has mounted over the last decade, the sales tax-backed Cofina bonds were considered the least risky investment investors could make there. But many suspect Puerto Rico, which has to pony up $1 billion by the end of the week, will try to use money meant for the Cofina bonds to pay off general obligation debts. Some say that would violate the constitutions of both the U.S. and Puerto Rico — and bondholders say they’ll sue over the money, adding to Puerto Rico’s many woes.