Puerto Rico's Debt Restructuring Sparks Cofina Bond Rally

The video discusses Puerto Rico's bankruptcy, focusing on the resolution of the Cofina bankruptcy, which is the largest municipal bankruptcy with $17.6 billion of debt restructured. It highlights the contentious but consensual settlement process between senior and subordinate bondholders, and the implications for Geo bondholders. The effectiveness of Puerto Rico's bankruptcy law, passed by Congress in 2016, is analyzed, noting the impact of natural disasters on the timeline. The video concludes with an optimistic outlook on Puerto Rico's economy and its plans to re-enter capital markets, emphasizing the importance of trust from potential investors.

What challenges did Puerto Rico face leading up to the bankruptcy settlement?

What is the significance of the law passed by Congress in 2016 regarding Puerto Rico's bankruptcy?