Puerto Rico Sales Tax Financing Corp (COFINA)

The disagreement over at-will employment is the latest episode on a struggle over policy measures intended to pull the territory out of recession and help in payment of its debt.

Investors, already frustrated with the lack of progress since PROMESA was passed, face at least another two years before most debt payments will resume.

Judge said that the relevant issues include federal as well as local law.

The Oversight Board's executive director said the budget's future is linked to government introduction of at-will employment law.

Magistrate Judge Judith Dein's decision may help creditors in their battle over the territory's fiscal plan and debt payments.

The board gave up on plan to reduce paid vacation and sick time and eliminate Christmas bonuses, but gained a promise of island-wide at-will employment.

Municipal volume will sink to $6.36 billion, with the California issuer responsible for a third of the week’s paper.

The decline in the unemployment rate is mostly due to emigration, a challenge as the territory restructures its debt.

Municipal bond volume slips back down to a more average level next week, after the market saw the biggest slate of the year hit the screens this week.

April’s General Fund collection was 15.7% higher than that of April 2017.

The effort by bondholders to work together is seen as a "positive development," though their plan was quickly rejected by the government.

Municipal bonds were mixed on Monday as buyers awaited the almost $10 billion of supply set to hit the market this week.

The consensual plan for $4.2 billion of Government Development Bank bonds amounts to repayment of 55 cents on the dollar.

GAO says Congress should consider giving SEC penalty authority over issuers, stripping Puerto Rico's triple-tax exemption,and expanding investor protection.

Bondholders will have to rely on the Oversight Board or the courts for debt service, analysts said.

Puerto Rico would have to have a vibrant economy and a stable government that is fiscally sound, said Rep. Rob Bishop.

A probe into possible wrongdoing prompted Gov. Ricardo Rosselló to jettison five staffers, weakening his administration at a critical juncture in the commonwealth's debt restructuring.

The Oversight Board is close to the governor on debt even as they publicly disagree over austerity policies.

Matosantos' ownership of renewable energy businesses on the island is said to conflict with responsibility overseeing PREPA.

General obligation holders said that the sales taxes supporting COFINA are resources that the territory's constitution promises to them.