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 […]
By Ronald P. Bernardi Stockton, California emerged from Chapter 9 on October 30, 2014 when U. S. Bankruptcy Judge Christopher M. Klein confirmed Stockton’s plan. Detroit, Michigan emerged from bankruptcy on November 7, 2014 when U.S. Bankruptcy Judge Steven Rhodes confirmed Detroit’s plan. Both judges ruled each plan as presented is fair and feasible to […]
By Ronald P. Bernardi Detroit Settles on UTGO Debt The family vacation photo that made its debut this past December, “Will Detroit turn BOND upside down?”, returns today, right side up. Last week Detroit reached a settlement with three bond insurers over the treatment of its unlimited tax general obligation bonds (UTGO) agreeing to pay this […]
By Ronald P. Bernardi Will the Detroit Chapter 9 bankruptcy turn the municipal bond world upside down? A random vacation photo captured this concern fairly well. With such a big question looming over the market, let’s review the ways in which the largest municipal bankruptcy in our nation’s history may set precedents for municipalities […]