The Impact of Climate Change on Municipal Bonds

🌍Climate change can put pressure on municipal bonds due to increased budgetary concerns.

💲Interest rates on municipal bonds may rise as a result of issues not addressed by state and local governments.

🌩️Anticipation of extreme weather events can lead to higher interest rates on municipal bonds.

💰State and local governments need to allocate infrastructure dollars wisely to address vulnerabilities to weather events.

🏗️Modernizing infrastructure in vulnerable areas can help mitigate the impact of climate change on municipal bonds.

Will climate change cause municipal bonds to default?

—No, but it may increase budgetary concerns and lead to higher interest rates.

Why would interest rates on municipal bonds rise due to climate change?

—Issues not addressed by state and local governments, such as extreme weather events, could result in higher interest rates.

What should be done to address the impact of climate change on municipal bonds?

—Identifying infrastructure vulnerabilities and allocating appropriate funds for modernization is key.

How soon will interest rates on municipal bonds rise due to climate change?

—It is difficult to predict precisely, but it could happen in the next 10 to 20 years.

Who should bear the cost of addressing climate change impacts on municipal bonds?

—State and local governments have the capacity to borrow funds at low rates to invest in infrastructure.

00:01Senator Merkley and Senator Kennedy discuss climate change.

00:07Climate change may increase budgetary concerns for state and local governments.

00:18Anticipation of extreme weather events can lead to higher interest rates on municipal bonds.

01:00Interest rates on municipal bonds may rise due to issues not addressed by governments.

01:36The impact of climate change on municipal bonds may be significant in the next 10 to 20 years.

02:01Identifying infrastructure vulnerabilities is crucial to address climate change impact.

03:03Becoming carbon neutral is a goal but may not be achieved by 2050.

03:30State and local governments have the capacity to borrow funds for infrastructure.