Puerto Rico’s financial troubles have become a nightmare for some of UBS’ clients, according to a Reuters report.

“UBS AG is backing away from its own Puerto Rico bond funds, warning clients that they can no longer use them as collateral for certain loans after the island’s financial troubles resulted in downgrades by major credit rating agencies.”

The funds, adds the report, are in many cases “stuffed with UBS-underwritten Puerto Rico debt.” Reuters previously reported the FBI was investigating UBS’ sales practices related to the funds.

Read more here.

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