Credit spreads on Puerto Rico bonds have widened dramatically in recent weeks compared to similarly rated municipal bonds that have seen spreads shrink as investors bottom-fish for yield among lower-rated securities.

Alan Schankel, a managing director at Janney Capital Markets, released a report this week showing that the yield differential between Municipal Market Data indexes that track Puerto Rico general obligation and generic Baa-rated bonds has significantly widened in the past month.

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.