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.