Market Commentaries

Update: COVID-19 and its Impact on Municipal Credit (Part III)

September 2020

September 28, 2020 In Part III of our municipal credit commentary pertaining to the health and economic crisis brought on by COVID-19 we overview the most recent data available pertaining to state revenue surveys and data from municipalities within the …


Advisor Perspective: Separately Managed Accounts Prove Their Worth

May 2020

In March 2020, the COVID-19 crisis caused dislocations across world financial markets. The municipal market was not sheltered from this chaos. At the end of February, tax-free yields were sub-1% out to 11-year maturities. In mid-March, municipal bond p …


Unique Economic Challenges of COVID-19: The Evolving Impact on Municipal Credit, Part II

April 2020

The effects of COVID-19 on the nation are far different than prior natural disasters in the recent history of the United States and continue to evolve with each day. We are still learning and reacting. The national impact is significant as evidenced by …


Keeping Calm and Carrying On

April 2020

I hope you and your families are well. I hope everyone is safe. The current state of affairs all of us face is fluid, so I want to provide you with periodic updates. Thankfully to date, the entire Bernardi Securities team remains healthy, safe, and eng …


COVID-19 and its Impact on Municipal Credit (Part I)

March 2020

We would be remiss to not wish each of our readers and clients safety and peace of mind during these most trying times. Following Governor Pritzker’s “stay-at-home” order, we want to let you know our firm will remain open via remote access operations a …


Support and Guidance for our Clients, Bernardi Team Members and Colleagues

March 2020

Good afternoon everyone. We are all experiencing unprecedented events and uncertainty resulting from the COVID-19 health threat. I am writing to provide a brief summary of actions we undertook last week to ensure our firm remains fully operational to s …


Finding Relative Value in the Municipal Market

March 2020

Contagion risk is gripping society and financial markets alike. Year-to-date the S&P 500 is down nearly 15% while oil dropped 25% yesterday alone. Treasury bond yields have dropped precipitously and at one point every rung of the Treasury yield cur …


Unapparent Risk in Municipal Bond Land

December 2019

2019 municipal bond market performance has been stellar as its safe-haven status persisted in a year packed with monetary policy easing from global central banks. The Bloomberg Barclays long-term tax-exempt index is up 7.54% YTD.[1] While 4Q informatio …


RE: Wall Street Journal’s “Your Stock Trades Go Free but Your Cash Is in Chains”

October 2019

Jason Zweig’s October 4th article underscores that transactions costs should not be the only metric investors use to evaluate investment platforms. Additionally – and as importantly – they need to consider opportunity costs, the portfolio management pr …


Bond Portfolio Strategy in a Booming Market

September 2019

“Negative nominal interest rates are contradictory in an expectations-driven liquidity trap, unless they are able to eliminate deflationary expectations altogether…This paper has shown that negative interest rates are likely to make things worse in an …


Stranger Things & Global Central Banks

August 2019

The hit Netflix sci-fi series Stranger Things takes place in the fictional 1980’s town of Hawkins, Indiana. The show follows a group of middle school kids fending off other-dimensional monsters and Russian conspiracy plots. The threats are significant, …


Advisor Perspective: Best Execution

April 2019

Registered investment advisors (RIA) who purchase fixed income securities for clients, should have best execution in the forefront of their minds. In July 2018, the SEC Office of Compliance Inspections and Examinations (OCIE) issued a risk alert detail …


REGULATION BEST INTEREST

April 2019

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 in …


Beware of the Average Benchmark

January 2019

January 18, 2019 By: Matthew P. Bernardi There are many facets and varieties of our active management approach to municipal bond portfolios. Credit analysis, ladder positioning, strategies offered, and tax-loss harvesting to name a few. Another importa …


Happy New Year and Thank You

January 2019

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 loca …