Wednesday, September 20, 2017 11:39 PM EDT
Hurricane Maria slammed into Puerto Rico Wednesday as a Category 5 storm. Our hearts and prayers go out to the citizens of Puerto Rico, as we know this storm will cause extensive damage to the Commonwealth.
Though uninsured Puerto Rico bonds have traded somewhat lower in price, insured Puerto Rico debt has actually traded up in price (down in yield) since last week’s Hurricane Irma ripped into the Virgin Islands, also a US Commonwealth.
We don’t know what the aftermath of the hurricanes will be, but there will clearly be Federal help to rebuild the infrastructure of both the Virgin Islands and Puerto Rico.
To the extent that Federal aid promotes the rebuilding of infrastructure in Puerto Rico, there may be a positive effect on the finances of the major issuers down the road. The bond insurers, who are already paying interest on defaulted Puerto Rico debt, may see some improvement in the fortunes of the issuers and can perhaps resume paying debt sooner, rather than later.
That is our best reasoning on the improvement we have seen in insured Puerto Rico bonds over the last week.
Disclaimer: The preceding was provided by Cumberland Advisors, Home Office: One Sarasota Tower, 2 N. Tamiami Trail, Suite 303, Sarasota, FL 34236; New Jersey Office: 614 Landis Ave, Vineland, NJ ...
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Disclaimer: The preceding was provided by Cumberland Advisors, Home Office: One Sarasota Tower, 2 N. Tamiami Trail, Suite 303, Sarasota, FL 34236; New Jersey Office: 614 Landis Ave, Vineland, NJ 08360. 1-800-257-7013. This report has been derived from information considered reliable, but it cannot be guaranteed as to accuracy or completeness. For a list of all equity sales/purchases for the past year, please contact Therese Pantalione at 1-800-257-7013, ext. 315. This report is currently about 1700 pages in length. It is not our intention to state or imply in any manner that past results and profitability are an indication of future performance. This does not constitute an offer to sell or the solicitation or recommendation of an offer to buy or sell any securities directly or indirectly herein. Cumberland Advisors supervises over $2.4 billion in separate account assets for individuals, institutions, retirement plans, government entities, and cash-management portfolios. Cumberland manages portfolios for clients in 48 states, the District of Columbia and in countries outside the U.S. Cumberland Advisors is an SEC registered investment adviser. For further information about Cumberland Advisors, please visit our website at www.cumber.com. Please feel free to forward this Commentary (with proper attribution) to others who may be interested. CONFIDENTIAL: This e-mail, including its contents and attachments, if any, are confidential. If you are not the named recipient please notify the sender and immediately delete it. Copyright and any other intellectual property rights in its contents are the sole property of Cumberland Advisors. E-mail transmission cannot be guaranteed to be secure or error-free. The sender therefore does not accept liability for any errors or omissions in the contents of this message which arise as a result of e-mail transmission. If verification is required please request a hard-copy version. It is important that you do not forward full account numbers, tax identification numbers or confidential personal information via email unless it is password protected Although we routinely screen for viruses, addressees should check this e-mail and any attachments for viruses. We make no representation or warranty as to the absence of viruses in this e-mail or any attachments. Please note that to ensure regulatory compliance and for the protection of our customers and business, your e-mail message is not private in that it is subject to review by the firm, its officers, agents, employees, and by federal or state regulatory authorities including but not limited to the Securities and Exchange Commission.
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