{"id":1430,"date":"2014-04-11T14:05:18","date_gmt":"2014-04-11T14:05:18","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2014\/04\/large_hedge_funds_invest_in_pu"},"modified":"2022-09-19T10:19:46","modified_gmt":"2022-09-19T15:19:46","slug":"large-hedge-funds-invest-in-pu","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/large-hedge-funds-invest-in-pu\/","title":{"rendered":"Large Hedge Funds Invested in Puerto Rico Bonds"},"content":{"rendered":"

\t\t\t\tAccording to The Wall Street Journal<\/em>, a number of large hedge funds and other nontraditional buyers got involved in Puerto Rico debt last month during the US Territory’s $3.5B bond sale, buying up to 70% of the deal. Brigade Capital Management, Och-Ziff Capital Management (OZM) LLC, Perry Capital LLC, Paulson & Co., and Fir Tree Partners were among those to purchase over $100M of the bonds. Black Rock Inc. (BLK), which is also a hedge fund, bought in as well. However, the list doesn’t indicate whether the firms still hold the bonds or if they have sold them since. (The Municipal Securities Rulemaking says that investors originally holding the bonds have already sold about $1.7 billion of the bond since it was issued.)<\/p>\n

Some of the other buyers that bought into the Puerto Rico bond <\/a>sale in March were Harvard University, OppenheimerFunds (OPY)<\/a>, a unit of Gannet Co., and a number of banks, insurers, and retail investors. (Also, many investors may not be aware of this but as of the end of last year, David Lerner Associates, the privately held broker-dealer that was the exclusive distributor of the troubled Apple non-traded REITs had invested in a big way in Puerto Rico debt via its Spirit of America Hi Yield Fund.)<\/p>\n

Since the bond sale, underwritten by Morgan Stanley (MS)<\/a>, Barclays (BARC), and RBC Capital Markets (RBC), the prices of Puerto Rico bonds have dropped. Prior to the sale the major credit rating agencies had downgraded the bonds to junk status, and many investors who bought into Puerto Rico municipal bonds through firms such as UBS (UBS)<\/a>, Banco Santander (SAN), Banco Popular, and other brokerage firms, were already filing securities fraud claims over their investment losses.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to The Wall Street Journal, a number of large hedge funds and other nontraditional buyers got involved in Puerto Rico debt last month during the US Territory’s $3.5B bond sale, buying up to 70% of the deal. Brigade Capital Management, Och-Ziff Capital Management (OZM) LLC, Perry Capital LLC, Paulson & Co., and Fir Tree […]<\/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":[3922,4039],"tags":[],"class_list":["post-1430","post","type-post","status-publish","format-standard","hentry","category-municipal-bonds","category-puerto-rico-bond-funds"],"yoast_head":"\nLarge Hedge Funds Invested in Puerto Rico Bonds — Investor Lawyers Blog — April 11, 2014<\/title>\n<meta name=\"description\" content=\"According to The Wall Street Journal, a number of large hedge funds and other nontraditional buyers got involved in Puerto Rico debt last month during the — April 11, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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