Tetra Tech Inc
Change company Symbol lookup
Select an option...
TTEK Tetra Tech Inc
ARQL ArQule Inc
BAC Bank of America Corp
SMTS Sierra Metals Inc
AOBC American Outdoor Brands Corp
AMAT Applied Materials Inc
GOVX GeoVax Labs Inc
PUMP ProPetro Holding Corp
NVDA NVIDIA Corp
SMCI Super Micro Computer Inc
Go

Industrials : Commercial Services & Supplies | Mid Cap GrowthCompany profile

Tetra Tech, Inc. is a provider of consulting, engineering, program management, construction management, and technical services. The Company's segments include Water, Environment and Infrastructure (WEI), Resource Management and Energy (RME), and Remediation and Construction Management (RCM). The WEI segment provides consulting and engineering services. The RME segment provides consulting and engineering services across the world for a range of resource management and energy needs. The Company includes wind-down of its non-core construction activities in the RCM segment. Its solutions span the entire life cycle of consulting and engineering projects and include applied science, research and technology, engineering, design, construction management, operations and maintenance, and information technology. It provides its services to a diverse base of international, the United States commercial, the United Sates federal clients.

Premarket

Last Trade
Delayed
$88.35
0.00 (0.00%)
Bid
--
Ask
--
B/A Size
--

Market Hours

Closing Price
$88.35
Day's Change
0.00 (0.00%)
Bid close
--
Ask close
--
B/A Size
--
Day's High
--
Day's Low
--
Volume
(Light)
Volume:
4

10-day average volume:
246,509
4

UPDATE: Why are green housing bonds not getting more love from ESG investors?

2:51 pm ET September 4, 2019 (MarketWatch)
Print

By Joy Wiltermuth

A lot will hinge on Freddie, Fannie privatization plan

Housing bonds that help make U.S. multifamily dwellings more planet-friendly aren't yet seeing the kind of love they probably deserve, according to Cantor Fitzgerald.

U.S. housing giants Fannie Mae (FNMA), Freddie Mac (FMCC) and Ginnie Mae have encouraged landlords to take out loans to help retrofit older apartment properties in ways that save energy and water and lead to lower utility bills.

Landlords can qualify for lower interest-rate loans and additional proceeds to fund green improvements through Fannie (https://multifamily.fanniemae.com/financing-options/specialty-financing/green-financing/green-financing-loans) and Freddie (https://mf.freddiemac.com/product/green-advantage.html) lenders, while the U.S. Department of Housing and Urban Development (HUD) offers reduced mortgage insurance premiums to Ginnie borrowers, another big cost savings.

As a result, some $200 billion of green apartment loans and bonds have been created via the housing agency programs in the past decade as of 2018, according to public filings.

But as Cantor analysts suggest, that figure only scratches the surface of what is possible when considering the three housing agencies currently control a combined $690 billion multifamily loan book of business.

Darrell Wheeler, head of securitized strategy at Cantor Fitzgerald, estimates that only about 20% of the federally backed housing agencies' multifamily portfolio has been underwritten to greener standards.

But by greening the entire portfolio, Wheeler sees landlords saving roughly $20 billion annually on utilities, while tenants could save another 20% to 40% on top of that.

"There appears to be a lot of good coming out of these programs," Wheeler said in an interview with MarketWatch. But there has yet to be a flow-through of those benefits, in terms of better bond pricing or demand from ESG investors for the green agency bonds, he said.

Freddie Mac reported that its green program was expected to save 3.6 billion gallons of water last year at properties it helped finance, while Fannie Mae said tenants alone would likely save $72 million annually on utilities.

To qualify for Freddie's and Fannie's programs, a borrowing landlord must show a pathway to saving a minimum 30% in water and waste consumption at a property, with at least 15% of that total coming from reduced energy use.

The hitch? Despite the benefits, green bonds sold by the housing agencies have been achieving roughly the same pricing as regular ones without the eco-benefits. "They don't really price any differently," Wheeler said of the green bonds.

That means that, while borrowers benefit from lower loan coupons, the housing agencies have yet to see lower costs when they pool green housing loans into bonds.

The housing agencies, themselves, don't make property loans, but they do buy debt from lenders that fit their criteria and package them into bonds with government backing.

Government guarantees give the housing bonds a haven appeal akin to U.S. Treasury securities, which often provides the agencies a pricing advantage over private lenders.

The 10-year Treasury note's yieldtumbled to a near-three-year low (http://www.marketwatch.com/story/treasury-yields-slide-lower-as-brexit-worries-spur-demand-for-bonds-2019-09-03) on Tuesday of 1.469%, after weak U.S. manufacturing data stoked fears of a looming U.S. recession and against the backdrop of a more than 300-point drop in the Dow Jones Industrial Average (http://www.marketwatch.com/story/dow-futures-head-200-points-lower-as-china-us-trade-angst-set-to-start-september-on-a-sour-note-2019-09-03) .

Because Freddie, Fannie and Ginnie finance affordable housing, they also have taken a lead in reducing the carbon footprint of an important swath of the nation's multifamily properties.

Low-income communities are particularly vulnerable to climate change and extreme weather events, in part because many affordable rental properties have been located in flood-prone areas, according to a new report from the Center for American Progress, (https://www.americanprogress.org/issues/green/reports/2019/08/01/473067/a-perfect-storm-2/) a policy institute with a liberal viewpoint.

Without a clearer pricing advantage on green bonds, there are no guarantees that the U.S. housing agencies will continue prioritizing planet-friendly housing finance.

The Trump administration is expected to unveil soon its plans to privatize Freddie and Fannie, which a decade ago were taken into conservatorship in the wake of the global financial crisis. More details are expected on the privatization front (https://www.wsj.com/articles/fannie-and-freddie-plan-is-likely-next-month-11566432606?mod=mktw) in early September, according to the Wall Street Journal.

Wheeler said a lot about Freddie and Fannie's green initiatives could hinge on what the privatization plan looks like. "It's the wild card," he said.

-Joy Wiltermuth; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires

September 04, 2019 14:51 ET (18:51 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.

Earnings Calendar and Events Data provided by |Terms of Use| © 2019 Wall Street Horizon, Inc.

Market data accompanied by is delayed by at least 15 minutes for NASDAQ, NYSE MKT, NYSE, and options. Duration of the delay for other exchanges varies.
Market data and information provided by Morningstar.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.
Please read Characteristics and Risks of Standard Options before investing in options.

Information and news provided by ,, , Computrade Systems, Inc., , and

Copyright © 2019. All rights reserved.