Puerto Rico Sees First-ever Bond Default

Puerto Rico failed to make a $58 million payment on its Public Finance Corporation (PFC) bonds, the first-ever default on Puerto Rico debt. "Due to the lack of appropriated funds for this fiscal year the entirety of the PFC payment was not made today," said Melba Acosta, the president of the island's Government Development Bank, in a statement. This is the first time the U.S. territory has missed a payment on its $72 billion in bonds outstanding. Further defaults could hit investors widely, as nearly one out of every three U.S. municipal mutual funds have holdings in Puerto Rico.