Wed, Mar 29, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Puerto Rico ready to submit to hedge funds demands

Wednesday, February 19, 2014

Komfie Manalo, Opalesque Asia:

The Puerto Rican government appears to be inclined to give in to the demands of several hedge funds to waive its sovereign immunity to secure a fresh $3.5bn financing, reported the New York Post.

The deal will allow Puerto Rico to stave off, at least for two years, default on its $70bn debt, although experts said waiving its sovereign immunity would put the Commonwealth into a slippery slope.

Several hedge funds, including Dan Loeb’s Third Point, Fir Tree and Arrowgrass Capital Partners, hold Puerto Rico’s municipal debt bonds and have initiated a $3.5bn financial window to the Commonwealth to prevent it from defaulting. The deal carries an interest rate north of 10%. Third Point is not involved in the new deal.

Puerto Rico is nearing default of its debt after its municipal debt bond was downgraded to junk status by credit raters.

The Post quoted Greylock Capital CEO and veteran of sovereign restructurings Hans Humes as saying that waiving its sovereign immunity would further put Puerto Rico into a more difficult situation. He said the new financing would translate to an additional $350m in interest, on top of the debt Puerto Rico is now unable to pay. "Hedge funds are setting it up for default," Humes said.

Last week, the hedge funds participating in the planned bond offering ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: FS Investments launches energy fund[more]

    Bailey McCann, Opalesque New York: $19 billion Philadelphia-based FS Investments has launched a new interval fund which will invest in energy. The FS Energy Total Return Fund is the firm's first closed-end interval fund and will invest opportunistically in energy companies and assets. FS

  2. Hedge fund liquidations in 2016 surpass 2009 levels, new launches decline[more]

    Benedicte Gravrand, Opalesque Geneva: Even as the hedge fund industry's total assets exceeded the $3tln milestone last year, hedge fund liquidations increased. So much so that 2016 had the highest number of liquidations since 2008, claims the latest HFR Market Microstructure Report, re

  3. Hedge funds find no joy in macro as returns lag Trump rally[more]

    From Gulfnews.com: In 2017, macro hedge funds were expected to shine. So far? Not so much. It's been a far from impressive first two months for funds that trade around macroeconomic events. Discretionary funds rose just 0.3 per cent through February, according to Hedge Fund Research Inc., while the

  4. Strategies - Billionaire investor Marc Lasry shares how he's playing markets right now, Classic models are failing FX hedge funds desperate for return[more]

    Billionaire investor Marc Lasry shares how he's playing markets right now From CNBC.com: Buy on the prospect of deregulation. Sell on the enactment of deregulation. That's the strategy that billionaire investor Marc Lasry is implementing, according to an interview with CNBC in Las Vegas

  5. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less