May 17, 2017

U.S. Treasury Yield Comparison
Source: U.S. Department of Treasury
Market Recap  
The chart above lists yields for U.S. Treasury securities for the current and prior week. Yields on all U.S. Treasury securities moved lower on the week.  

Puerto Rico begins the effort to restructure its debt in a San Juan court today. Judge Laura Taylor Swain will be the presiding judge. The court will be tasked with restructuring approximately $74 billion in debt and $48 billion in public pension underfunding. This is the most significant municipal bond restructuring since Detroit filed for bankruptcy in July 2013.  In the Detroit bankruptcy, $18 to $20 billion in debt required restructuring. In the Puerto Rico restructuring, it will be interesting to watch how General Obligation bond holders are treated compared to Revenue bond holders and how debt holders are treated compared to pensioners. 

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