PHOENIX - Investors are stepping up due diligence on triple tax-exempt bonds issued by U.S. territories, intrigued by the yields but wary of financial risk after the Puerto Rico debacle.

While the federal government is reportedly working on an analysis of the fiscal situations of U.S. debt-issuing territories other than Puerto Rico, investors and analysts are already mindful of the lessons of that island's financial distress as they chase higher yields and the benefits of interest payments that aren't taxable by the federal government or by any U.S. state or municipality. Guam, Northern Mariana Islands, the U.S. Virgin Islands, and American Samoa have the potential for similar concerns, investors and analysts said, but each is a unique story.

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