Scared by recent coverage of Puerto Rico's fiscal health, investors are painting all with Puerto Rico municipal bonds with the same brush, Robert Amodeo
, head of Western Asset Management's
] municipal group says, according to Bloomberg's
Amodeo said he primarily invests in Puerto Rico sales-tax bonds, some of which are rated Aa3 by Moody's, Chappata writes. Chappata quotes Amodeo as saying on his Puerto Rico debt strategy, "Right now there's this herd mentality where everything is getting beaten down just because it has the name Detroit in it or Puerto Rico in it. But if you dive down to the fundamentals and the lien status, you can find good value in those regions if you feel comfortable with the volatility that may come with it."
According to Chappata, Arnodeo said that fund withdrawals could reverse under "an improving fundamental landscape combined with cheap valuations." Chappata quotes Arnodeo as saying, "There's a broad improvement in the fundamental strengths within the public-finance area."
To read more, click here
Stay ahead of the news ... Sign up for our email alerts now