Hedge Fund-Driven Austerity Could Come Back to Bite the Hedge Funds Driving it in Puerto Rico

Summary: Virtually every headline about the Puerto Rican government’s newly released fiscal plan has focused on its finding that the island won’t be able to pay back the vast majority of funds owed to its creditors, many of them American-based hedge and mutual funds. Even in the new plan’s rosy projections for economic growth, the island would only be able to return a small fraction of its at least $74 billion in municipal debt in the next 30 years.