Hurricane Milton Threatens $30 Billion of Muni Debt in Florida.

Hurricane Milton poses a significant threat to approximately $30 billion of municipal debt in Florida, including bonds used to finance hospitals, utility systems, and senior living homes. The analysis from Bloomberg Intelligence highlights the potential for impairment issues across the municipal spectrum, particularly for credits with limited financial cushion. While municipal defaults due to extreme weather are rare, the back-to-back hurricanes have prompted investors to consider the risks of buying bonds in storm-prone areas. Florida's property market is supported by a state-backed reinsurance program and the Federal Emergency Management Agency's disaster fund, but both funds are at risk of running out of cash. Municipal bond sales are expected to increase as governments prepare for climate resiliency measures. [Extracted from the article]

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