One in Four Puerto Rico Municipal Bond Funds Likely to Default on Loans
Puerto Rico’s Electric Power Authority (Prepa) is expected to default on one in four of its municipal bond funds that hold some exposure to the debt of the utility. Prepa provides electricity to nearly 1.5 million households and businesses on the island and is a self-funded utility. There is approximately $1.7 billion in Prepa bonds held by mutual funds. They account for about $33 billion in assets. The Prepa securities are also the subject of ongoing FINRA arbitration claims against brokers at multiple firms, including UBS AG affiliate. Investors were sold Prepa bonds that subsequently lost value. If you invested in Prepa invested municipal bond funds, you may be able to recover your losses. Please call us at 312-332-4200 to speak to an attorney so we can help you recover your losses.
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