Puerto Rico's Debt Restructuring Sparks Cofina Bond Rally

The video discusses Puerto Rico's bankruptcy, focusing on the resolution of the Cofina bankruptcy, which is the largest municipal bankruptcy with $17.6 billion of debt restructured. It highlights the contentious but consensual settlement process between senior and subordinate bondholders, and the implications for Geo bondholders. The effectiveness of Puerto Rico's bankruptcy law, passed by Congress in 2016, is analyzed, noting the impact of natural disasters on the timeline. The video concludes with an optimistic outlook on Puerto Rico's economy and its plans to re-enter capital markets, emphasizing the importance of trust from potential investors.

What was the outcome of the Cofina bankruptcy settlement for senior bondholders?

• They received $0.95 including accrued interest.

• They received $1.00 including accrued interest.

• They received $0.58 including accrued interest.

• They received $0.75 including accrued interest.

What was the main issue between Geo bondholders and Cofina?

• A dispute over dedicated tax revenue.

• A disagreement on interest rates.

• A conflict over bond maturity dates.

• A debate on the restructuring timeline.

How much of the dedicated sales tax is being turned over to the Commonwealth?

• 60%

• 30%

• 50%

• 46%

What is the current economic status of Puerto Rico post-hurricane?

• The economy is stagnant with no growth.

• The economy is struggling with a deficit.

• The economy is declining with increasing debt.

• The economy is doing well with a surplus.

What is the total amount of new debt being issued by Puerto Rico?

• $12 billion

• $20 billion

• $17.6 billion

• $7 billion