Justin Formas was quoted in a 4/9/14 article on Bloomberg regarding Chicago Pensions. “At some point, you can’t kick the can any further and there have to be changes made,” said Justin Formas, director of credit research in Chicago at Bernardi Securities Inc., which oversees about $1 billion in municipal bonds. Emanuel “has a lot […]
Justin Formas was quoted in a 4/9/14 article on Bloomberg regarding Muni Credits. “Overall relative credit quality has improved and that shows in the price” of the swaps index, said Justin Formas, director of credit research in Chicago at Bernardi Securities Inc., which oversees about $1 billion in munis. “There’s more specific-name credit events versus […]
$5.225 Million Electric System Revenue Refunding Bonds, Series 2014 The Bonds are being issued for the purpose of refunding, on a current basis, the 2014 through 2030 maturities of the City’s Series 2010A Taxable Electric System Revenue Bonds (Build America Bonds-Direct Pay). The City joins a number of other Wisconsin municipalities taking advantage of extraordinary […]
To our Customers: As you may know, the IRS has mandated requirements for clearing broker-dealers, such as Pershing LLC, to provide cost basis information for covered securities on the 1099 tax reporting forms that are sent out in the early part of each year. Beginning in 2011, various types of securities phased in reporting requirements […]
The municipal bond market’s behavior in 2013 could be summed up by the old saying that the Chinese word for “crisis” – wēijī – is actually composed of two characters representing “danger” and “opportunity.” John F. Kennedy is credited for popularizing this concept in a 1959 speech, and it has since become a staple of […]
Ronald P. Bernardi was quoted in a 1/8/14 article on MuniNet Guide regarding municipal bond tax exemption: As Congress debates the future of tax exemption for municipal bond interest, one industry professional says it’s time for those whom it will directly affect – state and local government officials, taxpayers and citizens – to speak up. […]
Historical U.S. Treasury Bond Yield Curves Red Line = November 2003 (New, 30-yr. Treasuries were not being issued at this time) Orange Line = November 2008 Blue Line = November 2013 (current) Green Line = November 2012 Over the years, we’ve talked about the concept of the cost of waiting, most recently in 2010. What […]
Ronald P. Bernardi was quoted in the 12/3/13 issue of InvestmentNews regarding the long-term implications of the Detroit bankruptcy: “We look at this kind of market and know that higher yields translate to better income down the road,” said Ronald Bernardi, a muni bond trader and president of Bernardi Securities Inc. “From our perspective, 27 […]
“There are two kinds of people in the world, my friend: Those with a rope around the neck, and the people who have the job of doing the cutting.” – Tuco “the Ugly” (Eli Wallach), The Good, the Bad and the Ugly, 1966 As the repeal of federal income tax-exemption of municipal bond interest continues […]
Despite continual mutual fund outflows, the municipal market has kept pace with a significant rally in the Treasury market over the course of the last two months. Broadly speaking, municipal bonds are still inexpensive compared to Treasuries as the muni/Treasury ratio – the municipal rate divided by the corresponding Treasury rate – stands at 108%. […]