The Securities Litigation Expert Blog

Oppenheimer Municipal Bond Fund Puerto Rico Exposure

Posted by Jack Duval

Nov 5, 2013 1:30:36 AM

Yesterday we blogged about the aggregate fund family exposure to Puerto Rico municipal bonds, here.  Most fund families had little aggregate exposure to Puerto Rico debt, with only Oppenheimer Funds having double digit percentage exposure.

We cautioned that the aggregate numbers could be misleading because the Puerto Rico paper could be concentrated in a few funds.  This is somewhat the case with Oppenheimer.  A number of their state-specific municipal bond funds have higher levels of Puerto Rico debt.  Some of them include:

  • Virginia: 33%

  • North Carolina: >25%

  • Arizona: >25%

  • Massachusetts: >25%

  • Maryland: >25%

The average state-specific municipal bond fund has 2.38 percent exposure to Puerto Rico debt.  For more color on this, see InvestmentNews.

All data from Morningstar.

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Topics: municipal bond crisis, Puerto Rico, litigation, CEFs, investments, mutual funds, Oppenheimer

Puerto Rico Debt Exposure by Fund Family

Posted by Jack Duval

Nov 4, 2013 4:11:12 AM

It looks like most of the large mutual fund families have avoided the Puerto Rico debt crisis.  The chart below shows the total amount of debt (in millions) in each fund family and the percentage exposure to Puerto Rico.  One caveat, this is aggregate data at the fund family level, thus some of the individual funds may have high levels of exposure to Puerto Rico.

For a high resolution version of the chart, click Puerto Rico Exposure by Fund Family.


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Topics: municipal bond crisis, Puerto Rico, UBS, litigation, CEFs, investments

Puerto Rico Economic Activity Index From 2005

Posted by Jack Duval

Nov 2, 2013 7:15:04 AM

As with most sudden declines in a market, the recent selloff in Puerto Rico municipal bonds has been in the works for years.  Puerto Rico has been in a recession since 2006 as the Puerto Rico Economic Activity Index, below, clearly shows.

For a higher resolution version of the image below, click Puerto Rico Economic Activity Index.

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Topics: municipal bond crisis, closed-end funds, Puerto Rico, litigation, CEFs, investments, economic activity index

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