Muni SMA Strategies
Municipal Bonds: Local Impact
Company News
Investors flock to municipal bonds for yield and shelter - June 22, 2021
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
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
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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
Municipal Bond Past, Present, & Future | 2020’s Stress and What Lies Ahead
The past year and half presented many challenges, but also a multitude of silver-linings and learning experiences. Within the municipal bond market, the experience verified the sector’s overall creditworthy reputation and balance sheet sturdiness….Given the nature of the crisis, federal stimulus actions have been unprecedented. The Federal Reserve’s balance sheet now amounts to over $8 trillion, and we are expected to run a federal budget deficit of over $3 trillion for the second year in a row. This intervention from D.C. has generally impacted the municipal market in two ways:…
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.