I want to learn more about fixed income securities. My girlfriend works for the water quality department in my town and she studies the biological changes in water with pollution, and other stuff. She also deals with water sheds. Anyways, I want to study municipal bonds and how water risk scarcity needs to be focused on. Most municipal bonds that deal with utilities deal with water consumption and many of these bonds are rated AAA. However, they do not take into account the risk of rising consumption with population growth, global warming, and lawsuits with different states fighting for the same water source.
It will be interesting to see how my girlfriend and I team up on this project. She understands the biological, hydrological, scientific viewpoint, and I understand the investment analysis, risk management side of it. I think it will be a fun little project.
To start, I am reading the fixed income section of my CFA material ( I need to read it anyways), and I found a model of water risk management online that I will use.
This is what I do for fun..I’m such a nerd.