San Juan, the economic hub of Puerto Rico, triggered a rush for its $121 million muni-bond sale this week, as investors seized a rare opportunity to get exposure to island.
The battering of bonds this year from inflation and higher rates has made long-term municipal securities so cheap that investors who usually shun them may be buyers.
Puerto Rico’s debt attracted investors throughout the U.S. for its higher yields and because the securities are tax exempt in all 50 states. Bondholders now wonder if they will ever get repaid.
