Ocean City New Jersey, traumatized by Hurricane Sandy, received two AAA bond ratings for the 31 million in bonds that they proposed selling last year. These companies have not taken global climate changes into consideration. If the city suffers more losses due to rising tides and property destruction, investors will lose money and the city will not pay their debts owed.

Key Takeaways:

  • Scientists say more floods and stronger hurricanes are likely as the planet warms.
  • If repeated storms and floods are likely to send property values — and tax revenue — sinking while spending on sea walls, storm drains or flood-resistant buildings goes up, investors say bond buyers should be warned.
  • For more than a century, rating companies have published information helping investors gauge the likelihood that companies and governments will be able to pay back the money they borrow.

“If repeated storms and floods are likely to send property values — and tax revenue — sinking while spending on sea walls, storm drains or flood-resistant buildings goes up, investors say bond buyers should be warned.”

http://www.nreionline.com/finance-investment/rising-seas-may-wipe-out-jersey-towns-and-millions-aaa-bonds

A commercial building/property inspector will be able to help you discover underlying risks that may be hidden in potential properties in which you may invest. Call Allison Property Inspections with your questions about our detailed process for inspecting commercial, industrial, retail or multi-family buildings in Los Angeles, Riverside or Orange Counties.

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