Muni SMA Strategies
Municipal Bonds: Local Impact
Company News
Bernardi Securities & Bernardi Asset Management move into a new headquarters location! - May 25, 2021
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
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
Learn More
Check the background of Bernardi Securities or your investment professional on FINRA BrokerCheck
Market Commentaries
Perspective for Advisors
Muni Duration & Sharpe Ratio Analysis
According to our regression analysis, over the past 10 years (as of 12/31/2020), the correlation between tax-exempt municipals and taxable treasuries was high at roughly 88%, but municipals displayed lower volatility. Our regression analysis showed that for every 100 basis points (1.00%) increase in the 10-year treasury yield, the mean increase in the 10-year municipal yield was 0.82%. Furthermore, municipal yields are less correlated relative to corporates which…
Previous: Opportunity in Taxable Municipal Bonds
2021 Municipal Outlook and Year-end Review
In December 2019 we released Unapparent Risk in Municipal Bond Land which recapped a solid year of performance and warned investors of the underlying risks within the municipal market. We did not expect those risks to come to fruition so quickly, but they certainly became apparent three months later last March. We are gratified in many instances, our positioning of clients’ portfolios provided safeguards against the risks…
COVID-19 and its Impact on Municipal Credit (Part I-III)
LATEST – Part III: Thus far, the data indicates that some of the most dire revenue projections resulting from the pandemic lockdowns have not come to fruition as the resumption of economic activity has been stronger than expected.
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.