UBS offers to repurchase shares of Puerto Rico bond funds

Pile Of Coins

UBS offered to repurchase some shares of its Puerto Rico bond funds after the commonwealth’s debt has lost more than 16% this year.

Bloomberg reports that the buyback program applies to funds solely managed by UBS, and offers would be at net-asset value or below, Karina Byrne, a spokeswoman for the bank, said today in an e-mailed statement.

The firm has told advisers to contact clients who hold Puerto Rico closed-end funds and those with UBS Bank USA loans secured “in any part” by closed-end funds about the repurchase program, Byrne said.

The closed-end funds are capped to prevent the repurchase of more than 25% of outstanding shares over the life of the investment, Byrne said. Some funds are closer to that limit than others and may choose not to reach it with this buyback, she said.

Debt sold by Puerto Rico and its localities has lost 16% since the first of the year, the worst performance since at least 1999, Standard & Poor’s data show.

To access the complete Bloomberg article hit the link below

UBS Offers to Repurchase Some Shares of Puerto Rico Bond Funds:

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image: © Martin Abegglen

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