{"id":1326,"date":"2013-10-09T16:33:16","date_gmt":"2013-10-09T16:33:16","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/10\/puerto_rico_municipal_bonds"},"modified":"2022-03-10T16:38:42","modified_gmt":"2022-03-10T22:38:42","slug":"puerto-rico-municipal-bonds","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/puerto-rico-municipal-bonds\/","title":{"rendered":"Puerto Rico Municipal Bonds"},"content":{"rendered":"<p>\t\t\t\tThe securities attorneys with Shepherd Smith Edwards &amp; Kantas are investigating claims of investors who purchased Puerto Rico municipal bonds. Many of the largest brokerage firms that operate in Puerto Rico, including UBS, Banco Popular, and Banco Santander, have been selling huge amounts of securities which directly or indirectly were supposed to be investments in Puerto Rico municipal bonds. Those bonds have been viewed as attractive investments by many investors for years as a result of their tax incentives and relatively high yield.<\/p>\n<p>Interest paid by municipal bonds issued by Puerto Rico is exempt from taxation of any type in the United States. This is a significant incentive over municipal bonds issued by United States government entities, which are typically only exempt from Federal income tax, and would still be considered income by state and\/or local income taxes. (The exception for the State and local taxes is that most states exempt their own issuances from income taxes, but tax municipal bonds issued by other states.) Additionally, municipal bonds issued by Puerto Rico have, for years, carried relatively high-interest rates. Those high rates, coupled with the preferential tax treatments, have made it easy for brokers to convince their clients, particularly in Puerto Rico, to invest heavily in these securities.<\/p>\n<p>However, even as early as 2009 there were strong indications, as well as publicly available information, that these bonds were in trouble. In 2009, Puerto Rico&#8217;s governor declared a state of fiscal emergency. At the time, the territory carried approximately $47 billion in debt and was already bordering on junk-bond\/high-risk credit ratings. Yet at the same time, Puerto Rico&#8217;s economy shrank by roughly 5.5% in the same year, marking huge challenges for Puerto Rico&#8217;s ability to support such a level of debt.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/puerto-rico-municipal-bonds\/\"  title=\"Continue Reading Puerto Rico Municipal Bonds\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The securities attorneys with Shepherd Smith Edwards &amp; Kantas are investigating claims of investors who purchased Puerto Rico municipal bonds. Many of the largest brokerage firms that operate in Puerto Rico, including UBS, Banco Popular, and Banco Santander, have been selling huge amounts of securities which directly or indirectly were supposed to be investments in [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[4039],"tags":[2624,2625],"class_list":["post-1326","post","type-post","status-publish","format-standard","hentry","category-puerto-rico-bond-funds","tag-banco-popular","tag-banco-santander"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Puerto Rico Municipal Bonds &#8212; Investor Lawyers Blog &#8212; October 9, 2013<\/title>\n<meta name=\"description\" content=\"The securities attorneys with Shepherd Smith Edwards &amp; Kantas are investigating claims of investors who purchased Puerto Rico municipal bonds.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/puerto-rico-municipal-bonds\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Puerto Rico Municipal Bonds &#8212; 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