Tuesday, February 4, 2014
Puerto Rico Debt Downgraded to Junk Status
S&P rating agency downgrades Puerto Rico debt to junk status shortly after 3 PM today. Puerto Rico did everything it could to avoid the downgrade but the inevitable occurred. The news sent stocks and the muni bonds ETF lower. Any municipal bond fund that owns bad Puerto Rico paper will have to exit.
Note how the SPX recovered into the closing bell but MUB did not. Perhaps contagion will occur moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.