Key facts
- Water utilities are selling bonds at a record pace.
- The funds are earmarked for upgrading aging pipes.
- Utilities are also using the funds to meet tougher regulations.
- This issuance is in anticipation of potential federal funding cutbacks.
Water utilities are currently selling bonds at an unprecedented rate. This surge in debt issuance is primarily driven by the need to finance critical infrastructure upgrades, including replacing aging pipes, and to comply with increasingly stringent environmental regulations. The proactive financial strategy is also being employed in anticipation of potential reductions in federal financial support for water systems.