Wall Street Firms Gambled on Puerto Rico. They’re Losing.
- 7 years ago
Wall Street Firms Gambled on Puerto Rico. They’re Losing.
“I think a lot of money will be spent fixing Puerto Rico, and
that should be better for everyone,” said Marc Lasry, a founder of the Avenue Capital Group, a hedge fund that owns some of Puerto Rico’s debt
“We sustained a lot of damage, and we’re facing very significant losses,” said Brian Tenenbaum, regional director for the Morgan
Reed Group, which owns or operates several office buildings, commercial buildings and residential complexes on the island.
Mr. Paulson and his firm, Paulson & Company, have invested hundreds of millions of dollars there as he, along with many of the best-known
names on Wall Street, bet big on taking advantage of a long period of depressed prices for luxury properties and other real estate.
On Tuesday, the bondholders, including big investment firms such as OppenheimerFunds, the Baupost Group and Tilden Park Capital Management, got a jolt when President Trump said some of Puerto Rico’s debt might have to be wiped out — a comment
that sent the price of those already distressed bonds plunging.
Samuel Kirschner, chief operating officer with CPG Real Estate, which has been investing in commercial
and residential properties in Puerto Rico for nearly 18 years, has struggled to get his properties open because of damage from the storm.
“I think a lot of money will be spent fixing Puerto Rico, and
that should be better for everyone,” said Marc Lasry, a founder of the Avenue Capital Group, a hedge fund that owns some of Puerto Rico’s debt
“We sustained a lot of damage, and we’re facing very significant losses,” said Brian Tenenbaum, regional director for the Morgan
Reed Group, which owns or operates several office buildings, commercial buildings and residential complexes on the island.
Mr. Paulson and his firm, Paulson & Company, have invested hundreds of millions of dollars there as he, along with many of the best-known
names on Wall Street, bet big on taking advantage of a long period of depressed prices for luxury properties and other real estate.
On Tuesday, the bondholders, including big investment firms such as OppenheimerFunds, the Baupost Group and Tilden Park Capital Management, got a jolt when President Trump said some of Puerto Rico’s debt might have to be wiped out — a comment
that sent the price of those already distressed bonds plunging.
Samuel Kirschner, chief operating officer with CPG Real Estate, which has been investing in commercial
and residential properties in Puerto Rico for nearly 18 years, has struggled to get his properties open because of damage from the storm.