Ronald Bernardi was quoted in the 8/13/13 issue of InvestmentNews regarding bond issuances in Michigan, post the Detroit bankruptcy filing. “The bondholders might have to work out some kind of deal in Detroit, but to throw those debt-holders in the same group with the coffee vender doesn’t make sense,” said Ronald Bernardi, a muni bond […]
Ronald Bernardi was quoted in the 7/19/13 issue of InvestmentNews regarding the bankruptcy filing for the City of Detroit. “There are a lot of good credits in the state, and Michigan has traditionally been supportive of bond holders, but Gov. Snyder’s support for this plan has been surprising,” said Ronald Bernardi, a muni bond trader […]
A MIXED MESSAGE FROM THE FED Federal Reserve Chairman Ben Bernanke appeared before the Joint Economic Committee on Wednesday, May 22 and offered this testimony: “For some months, the FOMC has been buying longer-term Treasury securities at a pace of $45 billion per month and agency MBS at a pace of $40 billion per […]
Ronald Bernardi was quoted in the 5/16/13 issue of InvestmentNews regarding bonds issued by the City of Detroit. “For several years, Detroit’s finances have been below average,” said Ronald Bernardi, a municipal bond trader and president of Bernardi Securities, Inc. “In recent years, they’ve been issuing debt just to pay their operating costs. Anyone that is invested […]
STOCKTON’S APRIL FOOLS’ RULING “….and it is apparent to me that the City will not be able to perform its obligations to its citizens relating to such fundamental matters as public safety, as well as other basic governmental services, without the ability to have the muscle of the contract impairing power of federal bankruptcy law. Therefore, […]
LaSalle-Peru Township High School District #120 successfully issued $3,930,000 General Obligation Bonds (ARS), Series 2013 on April 11, 2013. Located in LaSalle County, Illinois, the District encompasses a population of nearly 30,000 people. The bonds were issued for the purpose of financing a state-of-the-art sports complex that would promote academic, artistic, vocational and athletic excellence […]
“Washington, D.C., March 11, 2013-The Securities and Exchange Commission today charged the State of Illinois with securities fraud for misleading municipal bond investors about the state’s approach to funding its pension obligations.”SEC memo headline, 2013-37 click to read “Illinois believed it to be in its best interests to enter into a settlement with the SEC….the […]
“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.” Text of the Sixteenth Amendment, ratified February 3, 1913 This year marks the 100th anniversary of the 16th Amendment legalizing federal income taxation. Importantly, unlike […]
The first month of 2013 began quietly for the municipal bond market. It ended, here in Illinois, with a thud. This month brings us the thirteenth year of the third millennium as measured by the Gregorian calendar. The Chinese calendar recognizes 2013 as the year of the black snake. The Mayan Long Count Calendar doesn’t […]
Finally, bond yields moved higher in December reversing the predominant 2012 trend line and reminding many that losses are possible even in Mr. Bernanke’s contrived bond market utopia. Centuries ago the bard from Avon opined (as did our own January 2004 commentary) “Sell when you can, you are not for all markets”. For a man […]