The $3.8-trillion municipal-bond market has found a new tool in its effort to understand the effects of climate change: satellites orbiting Earth. The deployment of spatial technology in the municipal market advanced in January when credit rating company S&P Global Ratings completed an analysis of U.S. water utilities using data from NASA satellite missions. Other investment firms say they’re starting to focus on geospatial information as a way to evaluate climate risks as well. “Most questions about climate change haven’t been answered in the muni market,” Stern said. “We’re just in the very beginning stages of getting our heads around the degree of risk that climate change poses to various issuers.”Other financial markets could benefit from the spatial data too.

Source: Los Angeles Times February 07, 2020 13:30 UTC