Puerto Rico Munis SWOT Analysis

Puerto Rico is expected to issue $2 - $3.5 billion in general obligation (GO) bonds later this month, the latest since a $2.7 billion offering in 2012, and with all the attention on the island’s credit rating over the last six months both traditional muni investors and new investors are expressing interest in the GO bonds.

“The Commonwealth of Puerto Rico’s fiscal problems have transfixed market participants, not only in the municipal world, but across the fixed income landscape and investors struggling with a low yield and a low supply environment face the quintessential risk vs. reward dilemma while evaluating Puerto Rico (PR) debt,” write Citi analysts Vikram Rai, Mikhail Foux, and George Friedlander, offering up a full SWOT analysis...