Puerto Rican Municipal Bond Losses

Our law firm is investigating claims on behalf of investors that purchased mutual funds that contain municipal bonds of the Commonwealth of Puerto Rico and suffered losses.

If you've purchased mutual funds that contain municipal bonds of the Commonwealth of Puerto Rico and suffered losses, call 1-800-934-2921 right now to protect your rights.

Kyros Law Offices is investigating claims on behalf of investors that purchased mutual funds that contain municipal bonds of the Commonwealth of Puerto Rico and suffered losses. This is regardless of whether you purchased those funds or bonds directly or through a broker.
 
Between August and September 2013, Puerto Rican bonds lost nearly 40 percent in value. The yields became higher than those on Greek debt. The result has affected U.S. investors that hold these financial instruments, many of which were marketed as single state funds. Serious losses have been suffered, creating a brutal cycle. The more prices fell, the more investors sold. This only resulted in pressure on Puerto Rico bond prices which led to investors selling even more.

For the period of December 2012 through March 2013, S&P, Moody’s and Fitch lowered their ratings for these general obligation bonds, placing them just above junk bond status. S&P’s annual one year returns for Puerto Rico municipal bonds fell over 19 percent. 

The Puerto Rican economy has suffered a serious recession. In 2012, the island saw a brief recovery. Unfortunately, in 2013, the economy began shrinking again and current forecasts for 2014 warn of even further weakening. This has generated great concern about the market for Puerto Rican bonds. Puerto Rico’s debt has surpassed $70 billion. That’s almost triple its debt in 2000. Their unemployment rate, as of August 2013, had reached 13.9 percent, compared to a nationwide unemployment rate of 7.2 percent.

In May, the Federal Reserve stated they may decrease its purchases of bonds overall. That ignited a meltdown in the municipal bonds market. Come July, Detroit filed the biggest municipal bankruptcy in the history of the U.S. Together, these incidents prompted startling sell offs in municipal bonds across the nation, not just Puerto Rican bonds. Currently, outstanding municipal bonds issued by Puerto Rico exceed $50 billion. Only New York and California surpass those numbers.

These circumstances have put a lot of investors in an unpleasant financial situation, including harsh losses. Many are not aware they could legally be eligible to file claims in regard to their losses. If you purchased, directly or through a broker, any mutual fund that contained Commonwealth of Puerto Rico municipal bonds and suffered losses as a result, you should contact our lawyers immediately and discuss your options. If you aren't certain that you own any fund containing Puerto Rican municipal bonds, our lawyers can help determine your fund’s portfolio holdings.

Puerto Rican Bond losses? Contact us now to protect your rights.

If you've purchased mutual funds that contain municipal bonds of the Commonwealth of Puerto Rico and suffered losses, contact us now to protect your investment. Complete the form on this page or call 1-800-934-2921 for a free no obligation consultation with a lawyer. We work on a contingency basis, so rest assured that there will never be an out of pocket expense to you.