Entries by Matt Bernardi

Late Year Yield Surge & 2025 Tax Reform

Happy holidays and Merry Christmas! We wish you a healthy and happy new year as we turn the page on 2024. 2024 ended as a subpar year for fixed income returns as coupon interest was offset by a late year surge in yields. The Bloomberg Municipal Bond Index[1] has returned 0.73% thus far year-to-date, after […]

Muni 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%.[1] As of early September, total muni supply is up 38% year-over-year.[2] As we enter the final quarter, the pace of new supply should escalate further potentially pressuring […]

BAM’s Muni Strategies Now Available on TradePMR

TradePMR’s Custodial Platform for RIAs enables SMA Strategies   Bernardi Asset Management (BAM) – a wholly owned subsidiary of Bernardi Securities – is pleased to announce the availability of its separate account municipal bond and high-grade fixed income strategies on TradePMR’s Fusion custodial platform. Both firms have more than 20 years of experience building customized […]

Cash vs. Bonds

With money market fund rates of 5% taxable and over 3.25% tax-exempt (5.15% TEY1), 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 […]

Municipal Market Update| Pick Your Spots

Persistently low supply met with sturdy demand is keeping municipal yields at bay, even as Fed rate cut projections get kicked further and further out the calendar. The nature of the demand has created a tale of two municipalities along the yield curve with attractive long term rates (12-20 years), but relatively unattractive yields in […]

BAM Awarded Manager of the Decade – High Income Municipal Bond Strategy

Northfield, IL February 2024 — Bernardi Asset Management’s (BAM) municipal High Income Strategy was awarded Manager of the Decade status by PSN within their US Fixed Income Universe. The PSN Top Guns Manager of the Decade list includes the top ten performers for the latest 10-year period. This is the second year in a row the High Income municipal strategy was awarded […]

Matt Bernardi recently participated in Private Vista’s Dollar$ and $ense podcast

Matt Bernardi recently participated in Private Vista’s Dollar$ and $ense podcast with Nicole Romito. They discuss the muni market’s unique decentralized governance framework, experience during COVID, current macro environment, and Matt’s take on the pension funding “myth”. Listen on Apple Podcasts: https://podcasts.apple.com/us/podcast/municipal-bonds-unveiled-with-matt-bernardi-ep-37/id1644917723?i=1000645304766 Or click here: Full link: https://dollars-and-sense-creating-fullfilled-life.blubrry.net/2024/02/14/municipal-bonds-unveiled-with-matt-bernardi-ep-37/

Two Strategies for Today’s Municipal Market

Here are two portfolio strategies we find attractive in today’s municipal market: Tax loss swaps Discount bonds[1] trading at relatively attractive yields Tax Loss Swaps Selling bonds is an infrequent exercise for most income-oriented investors. However, when bond losses present themselves on paper, it may make sense to capture them. Losses have arisen due to […]