Why didn’t investors demand higher yields for buying Puerto Rican government bonds?

For years, Puerto Rico’s economic and fiscal picture was deteriorating. Between 2005 and 2013, real GDP declined by 15 percent, while between 2000 and 2015 Puerto Rico’s government liabilities to GDP grew from 70 percent to 109 percent. Nevertheless, investors continued to purchase millions of dollars of Puerto Rico’s bonds with only a modest risk … Continue reading Why didn’t investors demand higher yields for buying Puerto Rican government bonds?