Puerto Rico debt crisis: Funds with the most to lose

Puerto Rico bonds, long known as "triple-tax-free," can add a fourth "T" to that equation: troublesome, tenuous or turbulent.

Pick your poison, but either way the outlook is problematic for Puerto Rican bonds, which famously offered investors a chance to escape federal, state and local income taxes.

Moody's and Standard & Poor's analysts said they're expecting Puerto Rico agencies to default on debt, possibly as soon as Wednesday, amid a financial crisis gripping the island economy.

At about $72 billion, Puerto Rico's bond debt bill is staggering, and the commonwealth's governor said Monday that it's "unpayable."

That's bad news for debtholders whose bonds are uninsured -- which is most of them. It doesn't necessarily mean that they'll be forced to accept big cuts. Bondholders are currently engaged in negotiations with Puerto Rican officials -- and the outcome could range considerably for the various agencies that hold the debt, including electric and water utilities as well as the central government itself.

Here are the top 10 bond funds with the most assets tied up in distressed Puerto Rico debt:

Oppenheimer Rochester Fund Municipals (RMUNX): $1,386,432,402

Oppenheimer Rochester High Yield Municipal Fund (ORNAX): $741,876,715

Oppenheimer Rochester Ltd Term New York Muni Fd (LTNYX): $712,381,191

Franklin California Tax-Free Income Fund (FKTFX): $661,658,064

Oppenheimer Rochester Limited Term Municipal Fd (OPITX): $597,408,828

Franklin High Yield Tax-Free Income Fund (FRHIX): $332,201,234

Franklin Federal Tax-Free Income Fund (FKTIX): $249,293,382

Goldman Sachs High Yield Municipal Fund (GHYIX): $235,846,845

Oppenheimer Rochester AMT-Free Municipal Fund (OPTAX): $225,043,988

MainStay High Yield Municipal Bond Fund (MMHIX): $215,681,932

Here are the top 10 bond funds with highest exposure of their market value tied up in Puerto Rican debt:

Franklin Double Tax-Free Income Fund (FPRTX): 47.23%

Oppenheimer Rochester Maryland Municipal Fund (ORYCX): 36.42%

Oppenheimer Rochester Virginia Municipal Fund (ORVAX): 34.60%

Oppenheimer Rochester Fund Municipals (RMUNX): 23.06%

Oppenheimer Rochester Ltd Term New York Muni Fd (LTNYX): 20.93%

Oppenheimer Rochester Limited Term Municipal Fd (OPITX): 19.95%

Oppenheimer Rochester Arizona Municipal Fund (ORAZX): 19.86%

Oppenheimer Rochester Michigan Municipal Fund (ORMIX): 19.81%

Oppenheimer Rochester North Carolina Muni Fund (OPNCX): 18.70%

Oppenheimer Rochester New Jersey Municipal Fund (ONJAX): 18.29%

Source: Thomson Reuters Lipper