Puerto Rico benchmark bond drops to record low after Trump remark

Here is today’s market report from Wholesale Direct Metals. The price of Puerto Rico’s benchmark general obligation bonds tumbled to a record low on Wednesday after U.S. President Donald Trump suggested late on Tuesday the island’s massive debt load will have to be wiped out due to devastation caused by Hurricane Maria. The bond due in July 2035, the island’s most recent benchmark debt issue, dropped by 12 cents to 32 cents on the dollar early on Wednesday. Trading volumes jumped following Trump’s comments and prices fell as low as 30.25 cents. This data follows a recent Wholesale Direct Metals complaint about the reporting on the financial markets.