Last Friday, the Commonwealth of Puerto Rico sent a team to New York to meet with a select group of investors as part of an outreach effort. It must’ve been a very select group because we have yet to run into anyone who attended, even among large institutional investors and major broker-dealers. In any case, the meeting so far hasn’t had the desired effect.

According to Municipal Market Data, PR credit spreads are starting to widen again. Since 3/18,10 year PR spreads vs AAA have gapped out by 15 bp to +300, only 10 bp shy of the widest spread recorded at the beginning of the year. Spreads  in the 30 year range have also widened by 10 bp to about +230.

This being a spring break week in the Northeast, one probably should expect more trading volatility when market players return to the office next week.

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About Triet M. Nguyen

Triet Nguyen is a veteran of the fixed-income markets and a high yield/distressed municipal bond expert. Over his 32 year career, Triet has designed, marketed and managed every type of buy side investment products, from mutual funds (open and closed-end) to managed accounts and hedge funds. He is currently the managing partner of Axios Advisors LLC, an independent municipal research and investment advisory boutique specializing in high income strategies. Triet is the author of “Investing In The High Yield Municipal Market”, to be published in July 2012 by John Wiley/Bloomberg Press. He also moderates the Municipal Credit Research Forum on LinkedIn. His Twitter handle is @HighYieldPro. Before rejoining Axios (which he founded in 2002), Mr. Nguyen was a Senior Vice President at B.C. Ziegler, where he traded tax-exempt high yield and taxable municipal bonds (including Build America Bonds). From January 2004 to January 2008, he was a Managing Director of Saybrook Capital, LLC, managing one of the first ever municipal hedge funds dedicated to a credit strategy. As Director of Information Services at between 2000 and 2001, Triet contributed to the development of a pioneering online muni bond evaluation system. Prior to 2000, he was a Vice President/Portfolio Manager of the John Hancock Funds and a Senior Portfolio Manager of the Putnam Funds. Triet received a B.A. in Economics and an M.B.A. in Finance and Accounting from the University of Chicago.


Puerto Rico


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