Puerto Rico Nears Bailout: NY, FL Could Be Key

Puerto Rico's access to capital markets is once again in question now that it has passed the Puerto Rico Corporation Debt Enforcement and Recovery Act, which allows for key public institutions to restructure their debt, and the island has been hit with a wave of downgrades, as have monolines like MBIA Inc. (NYSE:MBI) that are heavily exposed to Puerto Rican debt. Now Puerto Rico resident commissioner Pedro Pierluisi, a non-voting member of the House of Representatives, says that he will approach Congress to see if they are willing to support Puerto Rico, most likely in the form of debt issuance guarantees.