Entries by Matt Bernardi

Perspective for Advisors | Tax Loss Swap into a SMA

The market rout of 2022 has left few asset classes unscathed. The S&P 500 is down 22.51% through 9/23. While bonds have not been immune given the Fed’s 180 degree policy turn from late 2021 and persistent inflationary pressures. The 2-year treasury’s steep rise is a sharp representation of how quickly the Fed transformed from […]

Market Update: Municipal Yield and Valuation Overview

The first half of 2022 is one of the few market environments in recent history where all major asset classes suffered. The Novel Investor blog’s Asset Class Returns captures this nicely noting “cash” outperformed with a +0.2% return. “HG Bonds” (high-grade bonds) came in an uninspiring second place at negative 10.4%, while the S&P 500 […]

Perspective for Advisors: Bonds are Back!

Jerome Powell and his Federal Reserve colleagues have begun taking steps to put the income back in fixed income assets, leading to one of the worst bond market drawdowns in the past forty years.  Rates have spiked as the Fed has made a rapid about-face in its monetary policy approach. Concurrently, municipal yields are up […]

Municipal Market Update – Bonds are Back!

Jerome Powell and his Federal Reserve colleagues have begun taking steps to put the income back in fixed income assets, leading to one of the worst bond market drawdowns in the past forty years.  Rates have spiked as the Fed has made a rapid about-face in its monetary policy approach, as it aims to quell […]

Yield Curve Historical Perspective & Municipal Market Update

2022 is off to a volatile start in global financial markets as the Fed begins the process of tightening monetary policy. Yields have risen – especially at the front end of the yield curve, thereby flattening the curve. Today the average AA rated 2-year and 10-year municipal bond yields 0.97% (1.53% TEY) and 1.66% (2.63% […]

Intermediate-Term Taxable Strategy – Bernardi Asset Management Awarded Top Guns Designation

Northfield, IL November 2021 — Bernardi Asset Management (BAM), a wholly owned subsidiary of Bernardi Securities, Inc. (BSI) has been awarded a PSN Top Guns distinction by Informa Financial Intelligence’s PSN manager database, North America’s longest running database of investment managers. This award was for BAM’s Intermediate-Term Taxable strategy. This is the second Top Gun […]

End of Easy and its Implications for the Municipal Bond Market

As the Fed publicly discusses it is nearing the end of its emergency approach to the pandemic and begins scaling back its pace of securities purchases, we thought it would be a good time to review the current status of the municipal market and potential outcomes for the 4th quarter. Municipal yields – and bond […]

Market Summary & Relative Value of (Municipal) Bonds

The two main ingredients determining long-term bonds yields are future growth and inflation expectations. Yields have dropped significantly the past number of months as investors have come around to the Fed’s view of high inflation as transitory and the expectation of muted long-term growth projections. Over the past four months, the 10-year Treasury Note has […]

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Municipal Bond Past, Present & Future | 2020’s Stress Test 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. Federal monetary and fiscal policy intervention certainly have helped, though most states projected balanced budgets prior to the latest round of […]