Relevant:
- Puerto Rico Faces Record $2B Default July 1st: A Look at the Bonds Due
- UBS Puerto Rico Bond Fund "Roach Motels," Sold To Own Clients, Start Imploding
- Puerto Rico requests bankruptcy protection for public debt (LARGEST IN HISTORY)
- Imploded: R-G Premier Bank of Puerto Rico, Hato Rey, Puerto Rico
- Imploded: Westernbank Puerto Rico, Mayaguez, Puerto Rico
2015-09-23 — bloomberg.com
UBSÂ had a good thing going in Puerto Rico. The Swiss bank served as an adviser to the commonwealth's Employees Retirement System, led the underwriting of a $2.9 billion bond issue for the pension agency in 2008, and then stuffed half of those bonds into a family of closed-end mutual funds it sold exclusively to customers on the island. It collected fees at every step.
Now, with the U.S. territory in the downward spiral of a government debt crisis, it's all coming apart for UBS, long the biggest retail brokerage on the island. After UBS helped the government dig itself into a deeper hole and put island customers on the hook for the losses that followed, its Puerto Rico saga has become a cautionary tale of how risks can multiply.
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