Municipal Bonds
Drought strains finances in Texas town of Clyde
The small Texas city of Clyde missed bond payments in 2023 and 2024 amid a severe drought that reduced water sales and damaged infrastructure. Officials raised taxes and utility rates to address the shortfall, highlighting broader risks to the $4 trillion municipal bond market. Experts warn that droughts could expose more debt to climate threats than floods or wildfires by 2040.