Puerto Rico Vanishes from the S&P 500

Well it might not actually be an example of vanishing wealth, in January, Puerto Rico bonds facing possible junk ratings were pulled from the S&P National AMT-Free Municipal Bond Index.  Standards and Poor claimed the decision was because of [Puerto Rico]s debt's outsized yields and spotty liquidity.

Bottom line, S&P just made it harder to keep our bond industry from crashing and burning.   The policy shift, announced Jan. 8 and effective last Friday, raises worries that demand for Puerto Rico debt from investors tracking the index will soften when the Caribbean island is readying a bond sale or other possible financing.

From Rueters: http://www.reuters.com/article/2014/01/31/usa-puertorico-index-idUSL2N0L50ZK20140131