CERES has issued a 2010 report that examines serious challenges with municipal water supplies. This report, The Ripple Effect: Water Risk in the Municipal Bond Market, suggests that when municipal utilities take on bonded debt, investors might not have a full range of knowledge about the risks they incur as a result of serious water shortages. Presumably, the goal of this analysis is to get municipalities to take issues of water quality and quantity seriously lest they face increasingly high interest rates on the bonds they issue.
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