Puerto Rico filed for the largest bankruptcy in muni history. The Commonwealth is broke, has a weak economy, and carries a staggering debt load. This landmark event challenges longstanding assumptions on distressed municipal issuers. In this white paper, we discuss Puerto Rico’s impact on the broader municipal market and long-term implications.
“I grow very fond of this place, and it certainly has a desolate, grim beauty of its own…” –Theodore Roosevelt “France took Algeria, hoping for a country to eat cassoulet and instead France is now eating couscous. Inverse effects are the norm.” –Nassim Taleb Williston is the county seat of Williams County, North Dakota. It […]
“If one does not know to which port one is sailing, no wind is favorable.” –Seneca the Younger “And the future is certain; Give us time to work it out.” –The Talking Heads The first quarter of ’17 ends in 15 business days, the new administration has been in place for month and a half, […]
“If you see ten troubles coming down the road, you can be sure that nine will run into the ditch before they reach you.” –Calvin Coolidge Under the terms of the Banking Act of 1935, the Fed chair—formally the Chairman of the Board of Governors of the Federal Reserve System—is appointed to a four year […]
“I want to live happily in a world I don’t understand.” –Nassim Nicholas Taleb “’Is there any point to which you would wish to draw my attention?’ ‘To the curious incident of the dog in the night-time.’ ‘The dog did nothing in the night-time’ ‘That was the curious incident,’ remarked Sherlock Holmes.” –Sir Arthur Conan […]
“I always avoid prophesying beforehand, because it is a much better policy to prophesy after the event has already taken place.” Winston Spencer Churchill “Saying someone is good at making profits but not good at managing risk is like saying someone is a great surgeon except for cases when the patients die.” –Nassim Nicholas Taleb […]
“Never put off till tomorrow what you can do the day after tomorrow.” –Mark Twain At the start of Samuel Becket’s play Waiting for Godot, two men, Vladimir and Estragon, stand under a tree by the side of a road. They are (logically) waiting for Godot. Over the course of the play, the two repeatedly […]
“We shall go on to the end. We shall fight in France, we shall fight on the seas and oceans, we shall fight with growing confidence and growing strength in the air, we shall defend our island, whatever the cost may be. We shall fight on the beaches, we shall fight on the landing grounds, […]
“De l’audace, encore de l’audace, et toujours de l’audace! (Audacity, more audacity, and ever more audacity!)” –Georges Danton The “rulebook” for a developed-world central banker since roughly the end of World War II holds that economic growth can—and should—be regulated through interest rates. When the economy is growing too fast, and inflation becomes a problem, […]
“We are all apprentices in a craft where no one ever becomes a master.” Ernest Hemingway Risk is at the bottom of every investment decision. That means that, when you’re a professional investor, you spend a great deal of time thinking about risks. “What would make this go wrong?” is a question that should be […]
Treasury Partners is registered with HighTower Securities, LLC, member FINRA, MSRB and SIPC, and with HighTower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through HighTower Securities, LLC; advisory services are offered through HighTower Advisors, LLC.
This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.
All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and HighTower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.
This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of HighTower Advisors, LLC, or any of its affiliates.
about the author
began his career in the financial services industry in 1997 with AIG International. He has been associated with David D’Amico and Steven Feit since 1998, and joined Richard Saperstein at CIBC Oppenheimer in 2002.
Mr. Jones is Treasury Partners’ Senior Portfolio Manager and a member of the Portfolio Management Group. He implements and maintains our fixed income investment portfolios, and invests considerable time communicating with “the Street” and assessing developments within both the bond market and broader financial markets.