How have Hurricanes Harvey, Irma and Maria impacted the municipal bond market?

Affected regions’ long-term outlooks largely depend on initial credit conditions

Time to read: 4 min

The financial impact of 2017’s three devastating hurricanes has varied greatly depending on the region affected. From a credit standpoint, the most important takeaway is that each region’s ability to withstand the financial impact of the storms depends on its credit quality ahead of the storm. This does not bode well for Puerto Rico and the US Virgin Islands, which have been struggling with deteriorating fiscal conditions for some time. On the other hand, Houston and Florida are beginning the rebuilding process from a much stronger economic and financial position. Below we examine the storms’ impact on each affected region.