President Obama is proposing that Puerto Rico hold a new plebiscite to determine its political status.

If Puerto Rico's voters were to choose to become a state, the commonwealth would likely lose its ability to sell new bonds that were exempt from the taxes of other states and localities. Alaska and Hawaii lost this ability when they became states in 1959.

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.