Thursday, October 31, 2019

Lukewarm Bond Yields Belie Mayors’ Climate Alarm.

Lukewarm Bond Yields Belie Mayors’ Climate Alarm. If politicians believe what they say on the campaign trail, why don’t their cities disclose it to borrowers? By Peter Schweizer
Excerpt: Dire climate-change warnings have become a mainstay of politics. This is particularly true for state and local politicians whose coastal constituents stand to be most affected by rising sea levels. Mayors declare that impending eco-dangers represent an “existential threat,” and that significant portions of their cities will be submerged without swift and dramatic action. But do municipalities disclose these perilous environmental risks to potential bond investors? The Government Accountability Institute undertook a yearlong study of 40 major cities to find out if mayors’ apocalyptic projections about climate risks are factored into the interest rates on the municipal bonds their cities issue. The results revealed a gulf between the words municipal leaders speak and the disclosures cities make. There was no statistically significant difference in the interest rates for bonds issued by cities in high-risk locations for climate-change devastation versus those issued by low-risk cities.

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