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BAM Awarded Manager of the Decade status within the Municipal fixed income universe. The PSN Top Guns Manager of the Decade list includes the top ten performers for the latest 10-year period. See disclaimer here
Muni SMA Strategies
Municipal Bonds: Local Impact
Company News
BAM’s Muni Strategies Now Available on TradePMR - August 16, 2024
BAM Awarded Manager of the Decade – High Income Municipal Bond Strategy - February 29, 2024
Matt Bernardi recently participated in Private Vista’s Dollar$ and $ense podcast - February 22, 2024
BAM Awarded Manager of the Decade – High Income Municipal Bond Strategy - February 29, 2024
Matt Bernardi recently participated in Private Vista’s Dollar$ and $ense podcast - February 22, 2024
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Check the background of Bernardi Securities or your investment professional on FINRA BrokerCheck
Market Commentaries
Forty Years of Municipal Bonds – A Letter to Our Clients, Colleagues, and Friends
This is a milestone year for our firm.
On October 1, 2024 we celebrate our 40th year in business.
Entrepreneurial values, paired with a primary focus of serving our clients well, were the essence of our beginning. We were ambitious entrepreneurs looking to build a successful organization. We wanted to help people and organizations plan and improve their futures by investing in the bond market. And we wanted to help communities…
Municipal Market Update: Fairly Valued with a Hefty Supply Backdrop
Municipal tax-exempt yields maintain fair overall valuations amidst a significant pick-up in supply throughout the year. The 10-year muni/treasury ratio is 69% vs. a 5-year average of 71%. As of early September, total muni supply is up 38% year-over-year. As we enter the final quarter, the pace of new supply should escalate further potentially pressuring ratios higher. Therefore, we think this fall could present opportunities to capture relative value in municipals should supply remain ample and the economy avoid a major slowdown. That said, investors remain awash in cash…
Cash vs. Bonds
With money market fund rates of 5% taxable and over 3.25% tax-exempt (5.15% TEY), maintaining high cash balances is enticing. However, this is not an attractive long term investment strategy and will be a temporary mirage once rate cuts commence. In this piece we review various micro and macro factors that argue for employing an intermediate term laddered portfolio as a bond portfolio strategy instead of parking funds in the money market.
These factors include (in order from the macro to micro):
Perspective for Advisors
Tax Loss Swap into an SMA
Now is an opportune time to take advantage of tax loss swaps and, potentially, swap into a separately managed account strategy away from fixed income mutual funds and ETFs. This likely will reduce your clients’ tax burden and enhance their municipal bond investment vehicle.
Previous: Opportunity in Taxable Municipal Bonds