Climate change

The drenching of several regions exposed vulnerabilities that vary by state, and recurring problems that could jeopardize municipal credit.

The transition should not affect state credit, said John Ceffalio, senior research analyst for municipals at CreditSights.

John Ceffalio, Senior Municipal Research Analyst at CreditSights, talks with Chip Barnett about what to expect in the second half of the year. He discusses municipal bond market fundamentals, credit and climate disclosure. And he looks at the pandemic’s long-term risks for U.S. cities as the work-from-home culture becomes stronger and how higher education will cope with a new reality. (18 minutes)

The shutdown of a major California hydroelectric power facility underscores the severity of drought conditions in the state.

Rising sea levels could make catastrophic events such as recent subway flooding more intense and frequent in places including New York and Boston.

Sen. Patrick Toomey, the ranking Republican on the Banking Committee, has argued that research by the Federal Reserve into these topics could result in “mission creep.” Fed officials have said their job includes fostering inclusive economic growth and ensuring the banking system is girded against financial risks posed by climate change.

Experts weigh in on the potential impact of severe weather events and investigate the risks and solutions that may change the sector.

The question looms as to what point heightened wildfire activity becomes a significant risk for municipal debt.

To ensure continued economic growth, the state has seen a need to diversify into alternative water sources to meet projected needs as well as respond to drought and protect the environment.

Alan Rubin, principal, Blank Rome Government Relations