Oct 5, 2017

Puerto Rico's bonds in the balance

Dan Primack

The White House is sending out mixed signals on how it wants to handle Puerto Rico's $74 billion in municipal debt, which has become an even more pressing issue in the aftermath of Hurricane Maria. And the confusion pushed Puerto Rico benchmark bond prices even lower.

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Data: S&P Dow Jones Indices; Chart: Andrew Witherspoon / Axios
  • President Trump on Tuesday to Fox News: "You know, they owe a lot of money to your friends on Wall Street, and we're going to have to wipe that out. You can say goodbye to that."
  • White House OMB Director Mick Mulvaney on Wednesday to Bloomberg: "We are not going to pay off those debts. We are not going to bail out those bondholders."

Why it matters: Puerto Rico officials have said the government could shut down at the end of October if Congress doesn't provide billions of dollars in emergency funding. But the long-term recovery needs would be much different were Puerto Rico's debt to be wiped out, as Trump initially suggested.

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Rebecca Falconer

Obama urges help for Puerto Rico after back-to-back quakes

Former President Obama speaks at the Obama Foundation Summit in Chicago in October. Photo: Scott Olson/Getty Images

Former President Obama tweeted an appeal Sunday for people to support Puerto Rico's recovery following a series of earthquakes that have rocked the island, killing at least one person.

Why it matters: Puerto Rico's governor declared a state of emergency last Tuesday. President Trump has approved a federal disaster declaration request after two earthquakes measuring magnitudes of 6.4 and 5.8 struck — displacing many people and leaving much of the island without power. Aftershocks have since hit, and there was a magnitude 5.2 quake Friday.

Go deeper: In photos: Puerto Rico in state of emergency after back-to-back quakes

Keep ReadingArrowJan 13, 2020
Orion Rummler

More earthquakes hit Puerto Rico, as island remains in fear

Siblings in a Guanica, Puerto Rico parking lot on Jan. 9 after a powerful earthquake hit the island. Photo: Ricardo Arduengo/AFP via Getty Images

A magnitude 5.9 earthquake struck Puerto Rico on Saturday around 8:54 a.m., about 8 miles south of Indios, marking the most powerful tremor since a magnitude 6.4 quake hit the island on Tuesday, according to the United States Geological Survey.

What's happening: Multiple intermittent earthquakes affected the island on Friday and into Saturday morning, including a 5.2 magnitude earthquake Friday following quakes earlier this week that killed at least one person, caused widespread power outages and displaced nearly 2,000 people.

Go deeperArrowUpdated Jan 11, 2020
Dion Rabouin

The world's fast-growing mountain of debt

The world's total debt surged by some $9 trillion in the first three quarters of 2019, according to data from the Institute of International Finance, bringing the world's total debt load to $253 trillion, or 322% of its GDP — a record high.

Why it matters: In times of economic strength, economists exhort countries to pare back their debt burdens and pay it down to protect against future unrest and downturn.

Go deeperArrowJan 13, 2020