Even as Puerto Rico's governor struggles to address budgetary shortfalls and avoid decline of its credit quality below investment grade, the commonwealth's triple-B rated debt remains a relatively liquid and actively traded product in the secondary market, according to portfolio managers, analysts, and sales managers.

With the downgrade a week ago of two separate commonwealth-issued credits, the island's declining fiscal health is creating trepidation among retail investors and rating agencies and prompted swift action last week from Gov. Luis Fortuño.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.