Jan 16 2025 18 mins
On the latest episode of the Debtwire Municipals Muni Lowdown podcast, Managing Editor Paul Greaves speaks with Head of Muni Research Greg Clark and Curation Editor Stephanie Fagnani about the evolving evaluation of wildfire risk and municipal bonds.
Stephanie kicks off the podcast by providing a report on the extent of the damage, the initial cost estimates and the current status as it remains an ongoing situation.
The discussion shifts to Paul providing observations by market participants on how risk assessments for municipal could change in wildfire zones and what makes California a unique situation.
The podcast closes with a segue to Greg who provides a comprehensive overview of how various municipal bond sectors are impacted by just having to navigate wildfire damage, as well as the insurer and government received. He then provides a concise definition of why lease revenue bonds and similar structures could face additional risk, as it is a borrowing tool frequently used by local governments in California, as well as the state.