A FOUNDATIONAL PILLAR: INVESTOR FAITH AND TRUST The municipal bond market provides our economy with a deep pool of investment capital. Simply stated, Municipal Bonds Build America. Investor participation is high as both individual and institutional investors commit their savings to build our nation’s infrastructure: schools, town halls, county courthouses, airports, water and sewer treatment plants, recreation facilities, […]
We wish everyone a happy New Year. October 1st marked the first day of our 35th year at Bernardi Securities. In the fall of 1984 my father, Ed Bernardi, and several others opened the doors of Bernardi Securities for the first time. Our office was located across the street from City Hall at 134 North […]
The “Magic Square of 34” appears in the upper right side of Albrecht Durer’s 1514 copper plated masterpiece, “Melancholia.” The allegorical work is the subject of many interpretations. One interpretation asserts the scene depicts the age of Humanism, both its creative successes and unsolved frustrations.
As of this writing, the State of Illinois began its fiscal year (July 1) without a budget for an unprecedented third year in a row. Sunday evening the Illinois House of Representatives approved a $36 billion spending plan that increases personal income taxes to 4.95% from the current 3.75% level and the corporate levy to 7% from 5.25%. If the Senate, which approved a tax hike last month, concurs on the House bill it will be presented to the governor for consideration. He has stated he will veto both the House and Senate spending bills as currently written.
This chart demonstrates the volatility of the 10 year U. S. treasury bond since the beginning of 2016.
This volatility causes anxiety for many and understandably leads to several questions:
These are pertinent questions and are often posed to our Investment Specialists and Portfolio Managers during the course of a week
By Ronald P. Bernardi IDES OF MARCH 2016 – ET TU, PUERTO RICO? The Ides of March, the 15th of the month, represents the monthly midpoint of the Roman calendar. Julius Caesar was assassinated on the Ides in 44 BC by his friend Marcus Brutus and others. As he lay dying, Caesar uttered these words […]
By Ronald P. Bernardi Let’s slow down a bit before jumping to conclusions. Here are several observations about the October 30th, Wall Street Journal article How Muni Bonds ‘Yield’ 4% in a 2% World. Author Jason Zweig makes a valid point in asserting that yields cited in a typical custodian brokerage account statements may be […]
By Ronald P. Bernardi We thought you might find the attached white paper interesting. It is sponsored jointly by GFOA and IMCA and is authored by Justin Marlowe, professor at the University of Washington. The paper describes the important role tax-exempt financing plays in funding infrastructure investment and how access to tax-exempt financing shapes state […]
By Ronald P. Bernardi We thank our clients and others who count on us and wish everyone a healthy and prosperous 2015. This past November marked the beginning of our thirtieth year in business. Today, I want to share a few thoughts with you, some of which I’ve been reflecting on for a long time. […]
By Ronald P. Bernardi For many months, we at Bernardi Securities have closely followed the issue of municipal securities and their status as a high-quality liquid asset (HQLA) for commercial banks and nonbank systemically important financial institutions, or SIFIs (those with total assets exceeding $250 billion). We have been adjusting our portfolio management strategy somewhat […]