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Market Review – Winter 2018

Please find below our portfolio management team’s 2018 Winter Municipal Market Review. This provides an overview of current market conditions.  If you would like additional information about our process or specific strategies, please let us know 2018 Winter- Bernardi Market Review

Oakley Union Elementary School District

General Obligation Bonds, Election of 2016, Series 2017A The Bonds were upgraded to AA- from A+ by S&P in coincident with the issuance.  The Bonds were issued to finance a capital improvement project, and are payable from unlimited ad valorem property taxes levied and collected by Contra Costa County.  The project includes financing the acquisition […]

Market Review – Fall 2017

Bond yields have remained range bound over the past four months. Through the first two months of the third quarter, bonds continued their rally. The 10-year Treasury started the quarter yielding 2.31% and by 8/31 had fallen to 2.15%. Yields reversed course during the last month of the quarter with the 10-Year Treasury hitting 2.46% […]

Market Review – Summer 2017

The second quarter was a wild ride for the 10-year U.S. Treasury note. The 10-year started the quarter yielding 2.35%, rose as high as 2.41% and fell as low as 2.14%. It finished the quarter at 2.31%. The 2-year U.S. Treasury dropped 14 basis points (0.14%) over the quarter, causing the yield curve to flatten […]

The Cost of Waiting

In recent months, we have often heard the refrain from investors, “I’m just going to wait until interest rates rise.” and, in fact, many investors are waiting for Federal Reserve policy makers to raise interest rates before committing money to the bond market. This attitude is understandable given the Federal Funds rate has been held […]

Market Review – Spring 2017

The post-election bond market volatility that occurred during the fourth quarter of 2016 continued into the first quarter of 2017. The 10-year AAA MMD index reached a low of 2.14% on January 18th and topped out at 2.49% on March 14th. The difference between the high and low yield for the quarter looks large, however; […]