Saturday, October 26, 2013

US SEC inspect Puerto Rico's mutual funds for compliance with federal securities laws

U.S. SEC eyes mutual funds with Puerto Rico debt exposure
By Sarah N. Lynch and Lisa Lambert
Oct 24 (Reuters) - Examiners at the U.S. Securities and Exchange Commission have started reaching out to mutual funds with exposure to Puerto Rican debt, a spokesman for the agency said on Thursday. 

Puerto Rico has the highest interest rates of any big U.S. municipal bond issuer, a sign that the prices on its bonds are scraping bottom as the commonwealth struggles to right its troubled economy. After four years of recession, concerns have been raised about the possibility of default, spurring bondholders to sell off the territory's debt, which tops $70 billion. The S&P Municipal Bond Puerto Rico Index is down 17 percent so far in 2013.