Intensifying Storms Are Fueling a Record $17 Billion Bond Barrage
- BlackRock, Citadel Advisors, Pimco have been among buyers
- Appeal seen in top ratings, strong backing, attractive yields
Utility workers repair power lines following a tornado in Round Rock, Texas, on March 22.
Photographer: Jordan Vonderhaar/BloombergThis article is for subscribers only.
Bonds sold to help US utilities recoup losses from natural disasters are seeing an unprecedented boom, with the latest burst of issuance generated by the deadly February 2021 storm that paralyzed Texas as it struck a large swath of the country.
A record $17 billion of the debt, known as recovery bonds, has been sold this year, with the total likely to soon surpass $20 billion, data compiled by Bloomberg show.