Puerto Rico

New expectations for disaster funding, gross national product growth rates, and population may change projections of money for debt.

Assured Guaranty CEO Dominic Frederico said at the recent AFGI Puerto Rico Bankruptcy Risk Summit that "the open disregard of law" among public officials in Puerto Rico "could give public officials elsewhere reasons to believe they could escape their obligations."

James Spiotto, Managing Director at Chapman Strategic Advisors, explains why he believes U.S. district court Judge Swain's decision on special revenue bonds was wrong, and the impact it may have on revenue bond issuance, at the recent AFGI Puerto Rico Bankruptcy Risk Summit.

KBRA senior managing director William Cox, when discussing lessons learned from the Puerto Rico debt crisis at the recent AFGI Puerto Rico Bankruptcy Risk Summit, noted that the behavior of management sends "strong signals regarding credit character," in this case "chronically late financial statements."

At the recent AFGI Puerto Rico Bankruptcy Risk Summit, Matt Fabian, partner and lead analyst at Municipal Market Analytics, noted that investors "would like to have more distinguishing between credits, but market realities limit their ability to do so."

Adam Bergonzi, Chief Risk Officer of National Public Finance Guarantee, said at the recent AFGI Puerto Rico Bankruptcy Risk Summit that the event was created as a rebuttal to an "oft-heard sentiment" that the commonwealth's bankruptcy was an anomaly.

Critics pointed to the agreement's failure to lower operating costs and its "very favorable" treatment of Assured Guaranty.

The restructuring is expected to save PREPA and Puerto Rico residents about $3 billion in debt service payments over the next 10 years.

Sometimes you can get what you want as well as what you need as muni buyers get set to see $6.5 billion of new issues.

The board wants to recover more than $1 billion in payments and fees on bonds it deems illegal.