Muni SMA Strategies
Municipal Bonds: Local Impact
Company News
Investors flock to municipal bonds for yield and shelter - June 22, 2021
Bernardi Securities & Bernardi Asset Management move into a new headquarters location! - May 25, 2021
High Income Municipal Strategy – Bernardi Asset Management Named Top Guns Manager by Informa Investment Solutions - May 20, 2020
Bernardi Securities & Bernardi Asset Management move into a new headquarters location! - May 25, 2021
High Income Municipal Strategy – Bernardi Asset Management Named Top Guns Manager by Informa Investment Solutions - May 20, 2020
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Market Commentaries
Perspective for Advisors
Muni Duration & Sharpe Ratio Analysis
According to our regression analysis, over the past 10 years (as of 12/31/2020), the correlation between tax-exempt municipals and taxable treasuries was high at roughly 88%, but municipals displayed lower volatility. Our regression analysis showed that for every 100 basis points (1.00%) increase in the 10-year treasury yield, the mean increase in the 10-year municipal yield was 0.82%. Furthermore, municipal yields are less correlated relative to corporates which…
Previous: Opportunity in Taxable Municipal Bonds
Market Summary & Relative Value of (Municipal) Bonds
Over the past four months, the 10-year Treasury Note has moved from over 1.70% to now under 1.32%. Average yields for 10-year AA rated municipals are 0.99% (taxable equivalent at the 37% bracket is 1.57%). The tax-exempt yield is roughly 75% of treasuries, which is a reasonable valuation relative to historical levels, current market fundamentals, and the potential for higher tax rates.
Municipal Bond Past, Present, & Future | 2020’s Stress and What Lies Ahead
The past year and half presented many challenges, but also a multitude of silver-linings and learning experiences. Within the municipal bond market, the experience verified the sector’s overall creditworthy reputation and balance sheet sturdiness….Given the nature of the crisis, federal stimulus actions have been unprecedented. The Federal Reserve’s balance sheet now amounts to over $8 trillion, and we are expected to run a federal budget deficit of over $3 trillion for the second year in a row. This intervention from D.C. has generally impacted the municipal market in two ways:…