If you are interesting in investing money in Puerto Rico, you need to learn more about the main pros and cons involved in advance. Basically, it is a small bond market, and it may have a huge impact if it starts facing a potential default. 
The bad news is that all stock investors need to learn about Puerto Rico on the verge of default.
That’s because this country has a great deal of money in debt, including unfunded pension liabilities and other problems. It makes sense to mention that the population of this country is on its decline.
So, what US investors should do with this. If they do not have any debt at the moment, they may still keep investing in this kind of market passively. They need to remember that Puerto Rico is not designed for muni-bond fund investors. There are different reasons that can make these debts so attractive. You need to understand that some bonds have quite hefty payouts, while other can offer specific benefits. The best thing is that investors are not obliged to pay different local or state taxes, including their interests earned. They are able to get sizable benefits in its low-yield environment because of its tax-exempt status.
There are many experts who agree that Puerto Rico has quite strong legal protections when it comes to their revenue and obligation debts. However, it is necessary to be able to tolerate higher risks to be able to take advantage of this market and gain profits.
When investing money in Puerto Rico stocks, you should not forget that there are not only specific benefits involved, but you will also have to deal with certain risks. They can be quite high, and this is what causes many investors sell their bonds, especially during the past few weeks. The main reason is that they are afraid that they are not going to be paid back.
In conclusion, it is possible to invest in these stocks only if you can tolerate these risks. One of the most efficient options that you have is to invest in its hedge funds. This alternative can be a wise move when it comes to short-term investments. That’s because your interests may start getting higher, and the value of all previously issues bonds will keep deteriorating. You should think about these important factors before making your final decision about Puerto Rico stocks and bonds.