Puerto Rico

Northeast municipal bond issuance sank 11.7% in the first half of 2018 compared to a year earlier, reflecting a national trend driven by federal tax changes.

A hurdle has been passed for a judge to issue a ruling on the federal government's responsibility for making investors whole on impaired Puerto Rico bonds.

Key parties say the Oversight Board must certify a fiscal plan with more revenue before they will approve the agreement.

The deadline for voting is 5 p.m. on Sept. 12.

In early December a Puerto Rico government official said that he expected the fiscal year General Fund revenues to be 25% less than budgeted.

For one thing, analysts say general obligation bondholders may attempt to derail the plan in Title III bankruptcy court.

Puerto Rico issues rallied after the main parties reached a deal on the restructuring of Puerto Rico Sales Tax Financing Corp. bonds.

The Puerto Rico Oversight Board, the government of Gov. Ricardo Rosselló, COFINA senior bondholders’ representatives, COFINA subordinate bondholders’ representatives, and bond insurers agreed to the deal.

A draft of the plan in early July indicated that 71.3% of the funding was to come from the federal government.

The governor vowed to disobey Swain’s order, which he said would end Christmas bonuses or lead to "massive layoffs."