**Update**
The US government has announced that it will not bail out Puerto Rico. Subsequently, the commonwealth may default on its debt.This would cause a historic economic collapse since Puerto Rico’s governor said the island cannot pay its $72 billion in debts. The inability of the U.S. territory to repay its debt, combined with the financial crisis in Greece, may have far-reaching implications for financial markets and their American investors.
Puerto Rico became a territory of the United States in 1898. It cannot legally file for bankruptcy like American cities have done when faced with similar fiscal crises. Puerto Rico’s constitution states that it must make debt payments before paying for any other government services. This leaves the island in a fiscal limbo if it cannot make its payments.
Many investors in Puerto Rico municipal bonds have concern for their investments. The commonwealth has been able to stave off a bail out but the island remains indebted more than $70 billion dollars, or about 68% of its gross domestic product. Furthermore the three major bond credit rating agency downgraded Puerto Rico bonds to non-investment grade also called “junk status.”
According to the New York Times, “Puerto Rico is struggling with far more debt than analysts believe it can repay.” In addition the Times suggests that much of the debt is owned by middle-class Americans who indirectly bought municipal bonds as part of their retirement accounts.
Unlike states, US territories and commonwealths are not able to file bankruptcy. According to reports, the island is seeking a $2.2 billion dollar loan.
Unfortunately for many Puerto Rico bond investors they may have suffered significant losses in their investment. Although junk bonds pay high yield, they also carry higher than average risk that the debtor will default on the bond.
The White Law Group is investigating the liability that brokerage firms may have for recommending these risky bonds. Brokerage firms are required to perform adequate due diligence on any investment they recommend and to adequately disclose the risks of any investment. Additionally, brokerage firms are required to ensure that all investment recommendations made are suitable in light of the client’s age, investment experience, investment objectives, net worth, and income.
The following is a list of bonds that may be impacted by Puerto Rico’s current economic state:
Childrens Tr Fd P R Tob Asset Backed Bds-ser A 16876QBJ7
Puerto Rico Comwlth Pub Impt-ser A 7451455B4
Puerto Rico Comwlth Cap Apprec-ref-pub Impt 745145AT9
Puerto Rico Comwlth Cap Apprec-ref-pub Impt 745145AU6
Puerto Rico Comwlth Cap Apprec-ref-pub Impt 745145AW2
Puerto Rico Comwlth Ref-pub Impt 745145AX0
Puerto Rico Comwlth 745145EK4
Puerto Rico Comwlth Ref-pub Impt-ambac Tcrs 745145GB2
Puerto Rico Comwlth Pub Impt 745145HP0
Puerto Rico Comwlth Pub Impt-ser A 745145R38
Puerto Rico Comwlth Ref-pub Impt-ser A 745145T69
Puerto Rico Comwlth Pub Impt-fsa-cr 745145TM4
Puerto Rico Comwlth Cap Apprec-ref-natl Ibc-bny 745145TT9
Puerto Rico Comwlth Pub Impt 745145VB5
Puerto Rico Comwlth Pub Impt 745145VF6
Puerto Rico Comwlth Ref-pub Impt-ser A 745145YM8
Puerto Rico Comwlth Ref-insd-pub Impt-ser A 745145YQ9
Puerto Rico Comwlth Ref-pub Impt-ser A 745145YY2
Puerto Rico Comwlth Ref-pub Impt-ser A 745145ZB1
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LA56
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LA80
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LB63
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LB89
Puerto Rico Comwlth Unrefunded Bal-pub Impt 74514LBJ5
Puerto Rico Comwlth Unrefunded Bal-pub Impt-ser A 74514LBM8
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LC70
Puerto Rico Comwlth Cap Apprec-ref-xlca-icr 74514LCF2
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LD20
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LD87
Puerto Rico Comwlth Pub Impt-ser A 74514LDE4
Puerto Rico Comwlth Ser A 74514LE86
Puerto Rico Comwlth Pub Impt-ser A-cifg-tcrs 74514LEG8
Puerto Rico Comwlth Pub Impt-ser A-asset Gty-ibcc 74514LGL5
Puerto Rico Comwlth Ref-pub Impt 74514LHL4
Puerto Rico Comwlth Ref-pub Impt 74514LHM2
Puerto Rico Comwlth Pub Impt-ser A 74514LJX6
Puerto Rico Comwlth Pub Impt-ser A 74514LKA4
Puerto Rico Comwlth Pub Impt-ser A 74514LMA2
Puerto Rico Comwlth Pub Impt-ser A 74514LMB0
Puerto Rico Comwlth Pub Impt-ser A 74514LME4
Puerto Rico Comwlth Pub Impt-ser A 74514LMH7
Puerto Rico Comwlth Pub Impt-ser A 74514LML8
Puerto Rico Comwlth Pub Impt-ser A 74514LMM6
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LNE3
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LNG8
Puerto Rico Comwlth Pub Impt-ser A-agc-icc 74514LNJ2
Puerto Rico Comwlth Unrefunded Bal-pub Impt-ser A 74514LPT8
Puerto Rico Comwlth Unrefunded Bal-pub Impt-ser A 74514LPX9
Puerto Rico Comwlth Unrefunded Bal-pub Impt-ser A 74514LQA8
Puerto Rico Comwlth Unrefunded Bal-pub Impt-ser A 74514LQB6
Puerto Rico Comwlth Unrefunded Bal-ref-pub Impt-b 74514LQE0
Puerto Rico Comwlth Unrefunded Bal-ref-pub Impt-b 74514LQF7
Puerto Rico Comwlth Unrefunded Bal-2007-pub Impt 74514LQK6
Puerto Rico Comwlth Unrefunded Bal-a-radian-ibcc 74514LQW0
Puerto Rico Comwlth Unref Bal-07-pub Impt-natl Ibc 74514LRG4
Puerto Rico Comwlth Retail-ref & Pub Impt-ser C 74514LSU2
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LTG2
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LTL1
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LTR8
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LTS6
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LTT4
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LTU1
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LTW7
Puerto Rico Comwlth Ref-pub Impt-c7-conv-07/1/08 74514LUR6
Puerto Rico Comwlth Ref-pub Impt-c7-conv-07/01/08 74514LUS4
Puerto Rico Comwlth Unrefunded-pub Impt-b-agc-icc 74514LUV7
Puerto Rico Comwlth Pub Impt-ser A 74514LVL8
Puerto Rico Comwlth Pub Impt-ser A 74514LVM6
Puerto Rico Comwlth Pub Impt-ser A 74514LVN4
Puerto Rico Comwlth Ref-pub Impt-ser A-4-rmkt 74514LVU8
Puerto Rico Comwlth Ref-pub Impt-ser B 74514LVZ7
Puerto Rico Comwlth Ref-pub Impt-ser C 74514LWA1
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LWJ2
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LWK9
Puerto Rico Comwlth Ref-pub Impt-ser A 74514LWR4
Puerto Rico Comwlth Ref-pub Impt-ser C 74514LWY9
Puerto Rico Comwlth Ref-pub Impt-ser C 74514LXA0
Puerto Rico Comwlth Ref-pub Impt-ser C 74514LXC6
Puerto Rico Comwlth Ref-pub Impt-ser C 74514LXD4
Puerto Rico Comwlth Ref-pub Impt-ser C 74514LXH5
Puerto Rico Comwlth Pub Impt-ser A 74514LYW1
Puerto Rico Comwlth Ref-pub Impt-ser D 74514LZC4
Puerto Rico Comwlth Ref-pub Impt-ser D 74514LZH3
Puerto Rico Comwlth Ref-pub Impt-ser E 74514LZL4
Puerto Rico Comwlth Ref-pub Impt-ser E 74514LZN0
Puerto Rico Comwlth Aqueduct & Ref-ser B 745160PR6
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160PX3
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160PY1
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160PZ8
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160QA2
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160QB0
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160QC8
Puerto Rico Comwlth Aqueduct & Sr Lien-ser B 745160QG9
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A-radian-ibcc 745160QV6
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160RC7
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160RD5
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160RG8
Puerto Rico Comwlth Aqueduct & Sr Lien-ser A 745160RR4
Puerto Rico Comwlth Govt Dev Sr Nts-ser A 745177EN1
Puerto Rico Comwlth Govt Dev Taxable-sr Nts-d-build 745177EU5
Puerto Rico Comwlth Govt Dev Sr Nts-ser H 745177FB6
Puerto Rico Comwlth Govt Dev Sr Nts-ser H 745177FC4
Puerto Rico Comwlth Govt Dev Sr Nts-ser H 745177FD2
Puerto Rico Comwlth Govt Dev Sr Nts-ser H 745177FF7
Puerto Rico Comwlth Govt Dev Taxable-sr Nts-ser A 745177FM2
Puerto Rico Comwlth Govt Dev Taxable-sr Nts-ser A 745177FN0
Puerto Rico Comwlth Hwy & Ref-ser Cc 745181C54
Puerto Rico Comwlth Hwy & Ref-ser Cc 745181C70
Puerto Rico Comwlth Hwy & Ref-ser Cc-fsa-cr 745181D46
Puerto Rico Comwlth Hwy & Ref-ser Cc-natl Ibc 745181D61
Puerto Rico Comwlth Hwy & Ref-ser Cc-agc-icc 745181F85
Puerto Rico Comwlth Hwy & Prerefunded-ref-ser W 745181L21
Puerto Rico Comwlth Hwy & Unrefunded Balance-ref-ser X 745181L70
Puerto Rico Comwlth Hwy & Prerefunded-ref-ser Aa 745181M95
Puerto Rico Comwlth Hwy & Unrefunded Balance-ref-ser 745181N52
Puerto Rico Comwlth Hwy & Ser Y 745181NB9
Puerto Rico Comwlth Hwy & Unrefunded Balance-ref-ser Bb 745181P35
Puerto Rico Comwlth Hwy & Ref-ser Aa-natl Ibc 745181YW1
Puerto Rico Comwlth Hwy & Unrefunded Balance-2011-ser D 7451902B3
Puerto Rico Comwlth Hwy & Unrefunded Balance-2011-ser G 7451902R8
Puerto Rico Comwlth Hwy & Unrefunded Balance-2011-ser G 7451902S6
Puerto Rico Comwlth Hwy & Unrefunded Balance-ser M 7451903D8
Puerto Rico Comwlth Hwy & Unrefunded Balance-ser J 7451903P1
Puerto Rico Comwlth Hwy & Unrefunded Balance-2011-ser G- 7451904B1
Puerto Rico Comwlth Hwy & Sub-p R St Infrastr-natl Ibc 745190DA3
Puerto Rico Comwlth Hwy & Ser A-natl Ibc 745190DH8
Puerto Rico Comwlth Hwy & Ref-ser N-ambac Tcrs-bny 745190E79
Puerto Rico Comwlth Hwy & Ser E 745190HA9
Puerto Rico Comwlth Hwy & Ser E 745190HC5
Puerto Rico Comwlth Hwy & Ser E 745190HJ0
Puerto Rico Comwlth Hwy & Ser G 745190KC1
Puerto Rico Comwlth Hwy & Ref-ser N-agc-icc-fsa-cr 745190M88
Puerto Rico Comwlth Hwy & Sub 745190MH8
Puerto Rico Comwlth Hwy & Ser I 745190PN2
Puerto Rico Comwlth Hwy & Ser I 745190PQ5
Puerto Rico Comwlth Hwy & Ser J 745190QH4
Puerto Rico Comwlth Hwy & Ser K 745190TR9
Puerto Rico Comwlth Hwy & Ref-ser L 745190UF3
Puerto Rico Comwlth Hwy & Ref-ser L 745190UH9
Puerto Rico Comwlth Hwy & Ref-ser L 745190UQ9
Puerto Rico Comwlth Hwy & Ser K-cifg-tcrs 745190VW5
Puerto Rico Comwlth Hwy & Ser I-radian-ibcc 745190X52
Puerto Rico Comwlth Hwy & Ser M-radian-ibcc 745190Y51
Puerto Rico Comwlth Hwy & Ref-ser N 745190ZM3
Puerto Rico Comwlth Hwy & Ref-ser N 745190ZP6
Puerto Rico Comwlth Hwy & Ref-ser N 745190ZQ4
Puerto Rico Comwlth Hwy & Ref-ser N 745190ZT8
Puerto Rico Comwlth Indl Dev 745211LJ9
Puerto Rico Comwlth Ser A 745220EG4
Puerto Rico Comwlth Ser A 745220EH2
Puerto Rico Comwlth Ser A 745220EJ8
Puerto Rico Comwlth Cap Apprec-ser A 745220EP4
Puerto Rico Comwlth Cap Apprec-ser A 745220ES8
Puerto Rico Comwlth Ser B 745220EZ2
Puerto Rico Comwlth Ref-ser C 745220FH1
Puerto Rico Comwlth Ref-ser C 745220FJ7
Puerto Rico Comwlth Ref-ser C
If you are concerned about your bond investments and would like to speak to a securities attorney about your potential to recover your investment losses, please call our Chicago office at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.
