(CNBC) U.S. mutual funds with heavy exposure to Puerto Rico bonds have sold off some of the cash-strapped island's debt to meet investor redemption demands, taking heavy losses after a year-long slide in prices.
The sellers included some of Puerto Rico's most bullish U.S. mutual fund investors including OppenheimerFunds, a vocal supporter of the territory's recent financial improvements, according to analysts and public filings.
Funds with less exposure aren't likely to unload their Puerto Rico debt at fire sale prices, said Daniel Hanson, an analyst at Height Securities. They can afford to hold tight and ride out the storm.
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