Puerto Rico’s Fiscal Problems Won’t Undo the Whole Municipal Bond Market


“Puerto Rico’s ability to meet its financial obligations remains in question, but the island’s fiscal problems won’t seriously hurt the greater municipal bond market, said Bill Walsh, President of Hennion & Walsh. Walsh said the overall muni market is being boosted by a drop in supply as more municipalities try to lower their debt levels. Meanwhile, demand continues to rise as investors seek safety, yield and tax-free income. Finally, Walsh said investors should own individual issues if possible because they offer greater flexibility and control than exchange traded funds.”

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