As soon as the PROMESA BILL was signed by OBAMA, the Gov. of PR decided to default on
debt payments by 07/01/2016 including GO bonds. Now the three largest insurers are on the hook for around 800 million of different securities, being more of the GO BONDS.
PR has not released up to now the financial statements that Senator Orin Hutch asked Gov. Padilla to submit . Maybe they don't have any and can't produce one or they don't have any plan of releasing it. Who knows, it may open a can of worms.
Caution: PR may not be able to pay the whole 2 billion dollars by July 1, 2016 and can be selective in payments , depends on type of bonds. For sure insured bonds and GO bonds will have the advantage.
Rating agencies will still consider it as a default., but for now it is trading at .60 cents on the dollar.
The NAV is being adjusted in all the funds on a daily basis. Some PR bonds are trading in the 10's cents-.18
I agree with stockeater that once the restructuring is done there will be a pop more with RMUNX than ORNAX. ORNAX owns very little of the non GO bonds. GO bonds price will also ride the pop as all the bond ratings will be rated higher.