The post-crisis monetary policy reaction pushed interest rate markets into unchartered waters of zero interest rate policy (ZIRP). We have all become somewhat deadened to this reality over the last handful of years as monetary policy has led to heightened market valuations, paired with one of the longest periods of economic expansion (93 months) in our economic history.
By Matthew P. Bernardi Municipalities have done an excellent job since the financial crisis in stabilizing their finances and have pulled a number of levers to reduce fixed costs. Today’s low growth environment calls for prudent management and the average municipality has taken a conservative approach, especially relative to corporations. That being said, this low […]
By Matthew P. Bernardi Our descriptive Three Pillars is an over generalization of our approach to municipal credit analysis. When we look under the hood of each bond, numerous variables come into play, including: State statutes, taxing capacities and limits, the real or perceived unsecured status of the lien, political trends, and many others. This […]
By Matthew P. Bernardi “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” This straightforward method of reasoning can often help one gain a better understanding of the intricate – yet ubiquitous – financial products of today. When applying the reasoning above, in […]
By Matthew P. Bernardi Many investors find it difficult to pay a price greater than par for a bond. We often find this hesitation is purely psychological and causes some investors to miss an advantageous structure in a low interest rate environment. This market commentary is written to explain why premium municipal bonds often offer […]