An index comprised of Hawaiian municipal securities has dropped 2.81% in August, the worst performance of any state and compared to a 1.8% loss for the broader market, according to data compiled by Bloomberg. Hawaii is one of only four states to post a negative performance this year. At the end of July, its municipal bonds were sporting a more than 2% gain for 2023.
Doe said that that drop and the subsequent impact on the broader state index “exemplifies how reactive rather than proactive the market behaves relative to climate risks.” Goode also noted that the Hawaiian Electric bonds are a small part of the state index and the performance is also impacted by the macro-rate environment and decline in bond prices broadly. The index contains debt sold by a variety of Hawaii issuers like airports, municipalities and universities.The state is currently assessing the wildfire damage and evaluating the wide-ranging impact the event will have on its property and citizens.