Puerto Rico’s travails hit muni bond firm that bet big
March 04, 2014 at 12:47 PM EST
Oppenheimer Rochester has more than one-sixth of its assets tied up in Puerto Rico debt, a stretch for yield in a higher-risk part of the muni bond market that drove outperformance until last year. Steep losses have prompted investors to pull their cash, and state authorities have opened a probe. The next big test for Oppenheimer’s contrarian bet is Puerto Rico’s bond sale.