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Wildfire Warn of California Towns, Paradise, Municipal Bond Defaults

Paradise, California, a town destroyed by the 2018 campfire, is approaching default and local bond investors on how the warming planet is adding risk to the $ 4 trillion market He states that he is raising concerns.

Down power line I lit the fireSpread over a forested hill that was dried and burned by a long drought.The town received a $ 219 million settlement from a utility PG & E Corp. was founded in 2020, but Paradise recently disclosed to bondholders that it “cannot guarantee” that one of its institutions will repay the approximately $ 5 million it borrowed a few years ago. did. Government agencies are almost out of cash and local authorities are allocating settlement funds for reconstruction rather than debt repayment. S & P Global Ratings downgraded bonds by 6 notches to Triple C in June, pushing deeper into the junk territory.

Wildfire Warn of California Towns, Paradise, Municipal Bond Defaults

Source link Wildfire Warn of California Towns, Paradise, Municipal Bond Defaults

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