Felix Trinidad Reportedly Broke- Adviser Squandered $63 million

It seems Tito really does blow up between fights.

 

I'm not sure the story is even accurate. Here's a fairly recent article on Puerto Rico's bonds: http://www.reuters.com/article/2014/03/11/usa-puertorico-bonds-idUSL2N0M80ZO20140311

The key takeaway is that they just issued more debt (bonds) at about 9%. Because they have to pay back Tito's bonds first, whatever he paid is basically safe since you can keep a bond until maturity. So even if he bought bonds with a return of 3%, he's still going to be getting 3%.

There are only a couple of main ways to really get screwed on this:

1. You borrowed money to buy the bonds. A lot of money. A lot of leverage. The rate increases the lower your equity and the leverage kills you; or

2. You buy when the bonds are yielding 1% and sell when the bonds are yielding 9% and you take a megahit on the base value.

1 could wipe out Tito's funds. 2 could cause some damage, but shouldn't wipe him out.

3 is the killer and that's just when the entity cannot pay you back and you are left with a bond that returns nothing. However, that cannot be the case with Puerto Rico since they just issued debt at around 9%. Maybe he has bonds of certain towns within Puerto Rico. Can't tell.

 

Tito needs to get back with Rooney Mutual, learn the numbers system and get some hedge-movement.

 

Yes! put the money in the bank, Tito! Is is safe there, Amigo!

 

That is what I just said! !

 

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I REMEMBER THE MACHO MAN! WE MET AT THE YMCA! LOL! WHAT HAPPENED TO HIM? I HAVE NOT SEEN HIM BOX IN A LONG TIME??