WHAT ARE PUERTO RICO BONDS REALLY WORTH
Well you could say they are worth the market price 65 cents in the dollar
This is their market reality price.
Or you could try and determine the actual real reality price of the bonds i.e the discounted current market value of the actual cash flows that will be recieved in the future on these bonds.
But how do you determine this ....its impossible right?????
This information is simply not known.
Well the market is estimating these cash flows to come up with the current market prices.
But what if there is a better way....an alternative that is closer to the truth....to reality.
I suggest using an estimation of "capacity to pay" as an alternative measure.
Under this scenario as evidenced by the financial control boards usefully provided budget
The bonds are worth 30-40 cents on the dollar.
Considerably less than their current market prices.
Where is the Puerto RIco Bond Short EFT when you need it???