Mean, sick, and poor is no way to go through life, son.

So you bought mutual funds in your 401K right? Well, well, well.

In the aftermath of Puerto Rico's historic bankruptcy, a clearer picture of losses accrued by U.S. mutual funds on their holdings of Puerto Rican debt is beginning to emerge: the WSJ has calculated the red ink at as much as $5.4 billion over the last five years on total holdings of $14.6 billion.  Wall Street's paper of record lists the funds who have piled up losses, both realized and unrealized, on the trade. These include: Franklin Resources, Oppenheimer, Vanguard, Goldman Sachs Asset Management, Western, Lord, Abbett, AllianceBernstein and Dreyfus.

Of these, Franklin and Oppenheimer are the biggest losers, according to Morningstar data cited by the Journal. Oppenheimer has lost as much as $2.1 billion, and Franklin as much as $1.6 billion. That's compared with AUMs of $230 billion and $741 billion, respectively.

Meanwhile, six other fund families managed by Vanguard, Goldman, Western Asset, Lord Abbett, AllianceBernstein Holding and Dreyfus have racked up between $100 million and $200 million in losses each.

Of course, in the grand scheme of the funds' AUMs, the losses so far are negligible, so before retail investors assume that Meredith Whitney's prediction is finally coming true, resulting in another muni fund panic, it is worth recalling that all these funds have at least $100 billion each in muni-bond assets under management.  Furthermore, these investors are likely in better shape than some of their hedge fund colleagues as the damage done to mutual funds, and by extension the retirees and middle-class savers to which they cater, will be an important factor in the court-mandated restructuring of the island's debt, which begins Wednesday with a hearing in San Juan.
Permalink WorldRover 
May 15th, 2017 1:30pm
There's a reason why some debt pays higher interest than other.
Permalink Yoda 
May 15th, 2017 1:51pm
Goldman will find a way to screw their customers over this.
Permalink Send private email xampl9 
May 15th, 2017 2:16pm
Bailouts we* need bailouts.


* not you
Permalink Pestular Croaker 
May 15th, 2017 2:27pm
English could really use a bifurcation of the first person plural.
Permalink Shylock 
May 15th, 2017 7:37pm
"Y'all" is perfect for the plural of "you"
Permalink Send private email xampl9 
May 16th, 2017 9:36am
It would be except for all the people using it when addressing a single person.
Permalink Sangamon 
May 16th, 2017 9:46am
There is also "All y'all" which is used less often.
Permalink Send private email xampl9 
May 16th, 2017 10:40am

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