For decades, municipal bonds have made up a vital asset class for savers, retirees, and institutional investors. In the United States, that market is worth more than $4 trillion. At the same time, the revenue from issuing muni bonds pays for nearly 70% of the country’s infrastructure—everything from roads and bridges to water purification and sewage treatment plants. Yet as the effects of climate change are felt more strongly, this crucial system may face serious vulnerabilities.
My guest today is Tom Doe. He’s the founder and was the long-time CEO of a company called Municipal Market Analytics. Since the 1990s, the firm has advised well-heeled and sophisticated clients on all aspects of municipal bonds.
I sat down with Tom to better understand how this kind of climate vulnerability could play out. I wanted to know why, in spite of climate dangers, that the current effects of climate change on the muni market are still so hard to detect. And I was interested to learn how the power and resources of this vast market might be used to foster climate resilience.
Links:
Financial Climate