Bonds Nosedive as Trump Vows to Cancel Puerto Rico’s Debt
The trust is broken. Before Hurricane Maria, Puerto Rico’s bonds traded at 56 cents on the dollar. Tuesday, that was 44 cents … and Wednesday, after President Trump said he’d “wipe out” the island’s $70 billion debt, that plummeted to 30 cents, a record low. The president can’t legally do that, and the White House later clarified it won’t be involved in any restructuring. Meanwhile, with Puerto Rico one of the world’s primary pharmaceutical manufacturing hubs, many worry about shortages as factories struggle to find workers and fuel.