Muni SMA Strategies
Municipal Bonds: Local Impact
Company News
High Income Municipal Strategy – Bernardi Asset Management Named Top Guns Manager by Informa Investment Solutions - May 20, 2020
Muni market has stabilized since the pandemic jolt, but don’t skimp on credit check - May 5, 2020
MSRB proposes rule changes to line up with SEC’s best interest standard - May 5, 2020
Muni market has stabilized since the pandemic jolt, but don’t skimp on credit check - May 5, 2020
MSRB proposes rule changes to line up with SEC’s best interest standard - May 5, 2020
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Market Commentaries
Advisor Perspective: Separately Managed Accounts Prove Their Worth
…the separately managed account (SMA) structure proved its worth again. Our Bernardi Asset Management (BAM) tax-exempt strategies outperformed. Our SMA clients were not forced sellers and BAM’s strategy of allocating to high grade GO and essential purpose revenue bonds were two of the primary reasons. Ultimately, the SMA structure allows for greater control over portfolio activity and avoiding being caught up in the “herd” of market activity. Our BAM strategy returns below reflect this dynamic.
COVID-19 and its Impact on Municipal Credit (Part I & II)
Part I: In this environment liquidity (rainy-day balances), revenue source prominence (lien priority and/or purpose), and income source flexibility are important aspects of a bond’s underlying credit quality. Our focus on public purpose general obligation and essential revenue source bonds largely provide such levels of security……
Part II: In light of impending revenue shortfalls, the underlying credit quality of a municipality entering the crisis and management’s ability and willingness to reduce certain expenses takes on significant importance.
Keeping Calm and Carrying On
Befuddlement and confusion are understandable human reactions when a situation changes rapidly and profoundly. Like Butch and Sundance, many bond market participants experienced similar feelings last month. Investors, issuers, portfolio managers, traders and regulatory authorities found themselves asking at some point: “What just happened?”
Here is a brief recap to provide some context: