
If It Can’t Go On Forever, It Will Stop
if an activity can’t go on forever, it must eventually stop. Consider the rising U.S. government debt. If it can’t go on forever it will stop. Continue Reading →
if an activity can’t go on forever, it must eventually stop. Consider the rising U.S. government debt. If it can’t go on forever it will stop. Continue Reading →
These bonds are CUSIP 74514LE86. The bonds are Puerto Rico Commonwealth Series A maturing July 1, 2035. Take a deep breath. Those are 20 year bonds. The Commonwealth unloaded $3.5 billion of these with a hefty 8 percent coupon according to EMMA. But, as we all know, a bond is nothing more than a promise to make one or more future payments on specified dates. The quality of that promise is reflected in the yield to maturity, not the coupon yield. Continue Reading →
This is all very well and good, but it really doesn’t change my original analysis. If anything, it provides additional circumstantial evidence supporting my hypothesis: Puerto Rico really did get away with it. Continue Reading →