Municipal bond yields ended the month at higher levels than where they began the month, resulting in a negative monthly total return number for most portfolios. This decline in portfolio value was more pronounced on higher duration portfolios and bond funds as you would expect. The higher municipal bond yields resulted from: The continuing sell-off […]
It’s important to frame the developments in the broader financial markets over the last six to twelve months before discussing the municipal market’s continued ability to absorb issuer-specific credit events. Roughly a year ago, the United States’ triple-A credit rating was downgraded by Standard & Poor’s. This triggered one of the most pronounced and initially […]
There have been three municipalities that have either filed or have voted to approve filing bankruptcy in California in the past year: Stockton, Mammoth Lakes and most recently, San Bernardino. Stockton and San Bernardino went bankrupt due to the “usual” circumstances, they overspent or over-promised services and benefits to their citizens and employees (current & […]
Score one for bondholders. A federal judge ruled in June that Jefferson County, Alabama could not reduce debt payments while in bankruptcy in order to spend more of the system’s net operating revenues on its aging sewage system. County’s Orwellian claim at odds with municipal market In its losing argument, the county claimed future capital […]
Renewed questions as to the health of the European Economic Union coupled with news of slowing growth in China, India and here at home sparked a strong rally in the Treasury market this past month. Treasuries rally more pronounced While this may read like the same “Treasuries rally” market commentary from March or April, the […]
Bond prices rose during the month and bond yields declined from March end of month levels. The 10 year taxable Treasury bond ended the month yielding approximately 1.95%. The price rally was particularly felt in the non-taxable municipal bond sector. A manageable new issue supply was easily absorbed by available cash balances, as well as […]
Bond yields on both U.S. Treasury and municipal bonds were on the rise in March and ended the month at higher levels than the month before. The 10-year taxable Treasury bond yielded 2.21% at month end, up from 1.97% on February 29th, but down from mid-month levels of 2.37%. Municipal bond yields increased similarly in […]
Leap Year means 29 days in February 2012, so there is an extra day of bond news this month. New issue supply remained modest, demand strong The new issue supply of municipal bonds remained fairly modest in February and investor demand remained strong during the month. Prices in the U.S. Treasury bond market held up […]
The bond market’s powerful December rally continued unabated into the first month of the year. Bond yields declined to near historic lows in both the U.S. Treasury and municipal bond sectors. The 10-year Treasury yield fell to 1.80% on January 31st versus 3.37% on the same day last year. The 20-year “AAA” rated municipal bond […]
As Bernardi Securities, Inc. begins its 27th year, we are acutely aware of the importance of understanding the credit quality of the municipal bond issues we recommend to our clients. We have long believed the bond portfolio research and management process starts with credit analysis. Our long-time clients have heard us preach these three constants […]