MMA’s interest and commitment to quantifying the risks of climate change to municipal securities has taken a significant step through its relationship with risQ. risQ, a National Science Foundation-funded company, is the leader in modeling and translating climate risk to the bottom line for municipal debt participants. The recent California wildfires motivate exploring the probability and severity of risk to other municipal obligors.
KEY TAKEAWAYS
- Wildfires, flooding, hurricanes, and heat stress, are expected to inflict greater and more frequent destruction under climate change. These hazards can exacerbate traditional municipal credit risks, particularly among fiscally strained obligors.
