Spreads between Puerto Rico general obligation paper and the generic triple-A rated GO sector have narrowed considerably since the beginning of the year and continue to do so.

The growing attractiveness of the commonwealth's paper is due to an overall supply shortage, an increased willingness by investors to buy lower-rated paper, and the debt's unique triple tax exemption, according to market participants.

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.