In an era where climate change is no longer a distant threat but an immediate reality, its economic implications are becoming impossible to ignore. The recent academic study presented at the Brookings Institution reveals a stark reality: wildfire risks are already inflating the costs of municipal borrowing, particularly for school districts in fire-prone regions. This
Bonds
Houston’s latest bond issuance aimed at bolstering its airport infrastructure seems promising on the surface, yet beneath the glossy veneer lies an uncomfortable reality: overconfidence in passenger traffic growth. The city plans to raise nearly $720 million to fund an extensive capital improvement plan (CIP) for its airport system, with expectations of consistent growth and
New York’s recent foray into the prepay energy bond market signifies a daring shift in how the state finances its energy infrastructure. After years of hesitation, the New York Power Authority (NYPA) finally issued its first triple-tax-exempt prepay electricity bonds, marking a departure from the traditional reliance on more conventional, and sometimes more costly, financing
The recent inertia in municipal bond markets, characterized by minimal price fluctuations amidst seemingly stable yields, masks an undercurrent of systemic vulnerability. For decades, munis have been regarded as a safe haven for conservative investors, largely insulated from the turbulence faced by corporate or equity markets. However, a critical analysis of current market dynamics reveals
Utah’s Alpine School District’s latest move to issue a $201 million bond is portrayed as a necessary investment to keep pace with burgeoning student populations and infrastructure needs. Yet, a closer examination reveals that this seemingly forward-looking financial strategy may be masking deeper issues. This borrowing spree, justified by the district’s supposed growth, actually exposes
For over a decade, the municipal bond market has remained a steadfast fixture, maintaining a steady valuation around $4 trillion. However, recent trends suggest that this stability is fragile and potentially misleading. The market’s recent burst—rising to approximately $4.233 trillion by the first quarter of 2025—marks a significant acceleration not seen since the post-financial crisis
The recent decision by North Carolina’s Local Government Commission to approve over half a billion dollars in bonds raises critical questions about the state’s fiscal discipline and priorities. While these bonds are touted as investments in essential infrastructure—from city improvements to healthcare facilities—their approval also exposes the risks of overly leveraged local governments. Public officials,
Over the first half of the year, the municipal bond market has experienced an unprecedented flood of issuance, shattering recent records and raising serious concerns about sustainability. More than $280 billion has been issued in this period—a 14.3% leap compared to the previous year—testament to issuers’ relentless desire to secure capital amid uncertainties. This aggressive
Despite the nostalgia surrounding municipal bonds as a safe haven for conservative investors, the current market environment reveals troubling ambivalence rather than robust vitality. Municipal debt showed only faint signs of improvement at the start of the week, with yields creeping up marginally while U.S. Treasuries gained ground and equities rose. However, this modest uptick
The municipal bond market, traditionally a bastion of stability and tax-advantaged fixed-income investing, is showing signs of strain that many investors seem unwilling to fully acknowledge. As we move deeper into 2025, the sheer volume of new municipal debt issuance is reaching unprecedented levels. With an expected $50 billion in supply just for June and