Fri, Jan 20, 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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised