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The article looks at the investment climate in Puerto Rico as of June 27, 2016. Topics discussed include the risks facing holders of the country's general-obligation bonds, the anticipated creation of a federal oversight board to restructure the island's debt, and the expectation that bondholders will be paid off at a discount to par or face value.

The article focuses on the challenges facing American investors with investments in Puerto Rico following the passage of legislation in the country in June 2014 which will provide a mechanism to restructure the debts of public corporations. Topics covered include the debt burden in Puerto Rico, the impact of the legislation on municipal bonds, and how the legislation will allow the Puerto Rico Electric Power Authority (Prepa) to restructure its debt.

The article discusses the portended economic disaster in Puerto Rico following the announcement of its governor, Alejandro Padilla, that it seeks a broad restructuring of its debt obligations since it cannot pay its debt. Topics discussed include the announcement's impact on the price of general-obligation (GO) bonds, the potential for bonds to be restructured, and the advantages of GOs over other investments such as strong constitutional protection and controlled by a group of hedge funds.