Dan Fuss Says Bondholders Need to Get Real on Puerto Rico

Dan Fuss discusses Loomis Sayles' exposure to Puerto Rican debt amidst economic challenges and disasters. He emphasizes the need for economic strength and stable jobs in Puerto Rico, highlighting historical assumptions about US support. The discussion compares Puerto Rico's situation to Greece's financial crisis, suggesting a potential 'haircut' for bondholders. Political will and economic solutions are deemed crucial for recovery, with a focus on the reality of the situation and the obligation to help Puerto Rico as US citizens.

What is Dan Fuss's primary concern regarding Puerto Rico's current situation?

• The immediate needs of Puerto Rico's people

• The legal priority of bondholder claims

• The historical context of the debt

• The potential for economic growth

What assumption did bondholders make about Puerto Rico's debt?

• Puerto Rico's economy would grow rapidly

• The U.S. would backstop Puerto Rico's debt

• The debt would be forgiven by international banks

• Puerto Rico would never face economic challenges

How does Dan Fuss compare Puerto Rico's situation to Greece?

• Both have strong economies

• Both require a political solution

• Both situations involved a 'haircut' for bondholders

• Both faced natural disasters

What is necessary for Puerto Rico to regain economic stability according to Dan Fuss?

• Immediate debt forgiveness

• Increased economic strength and stable jobs

• A change in political leadership

• More international loans

What role does political will play in resolving Puerto Rico's debt crisis?

• It is irrelevant to the situation

• It guarantees debt forgiveness

• It is crucial for implementing solutions

• It only affects U.S. bondholders

How does the President's statement about wiping out the debt affect the bond market?

• It has no impact

• It creates uncertainty and confusion

• It guarantees debt forgiveness

• It provides clarity and stability

What is Dan Fuss's view on the future value of Puerto Rican bonds?

• They will never regain value

• They should be sold immediately

• They are guaranteed to increase in value

• They will have value if Puerto Rico's economy strengthens