Entries by Matt Bernardi

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 […]

Taylorville, IL Community Unit School District No. 3 | $12,875,000 General Obligation Limited School Bonds, Series 2021A and $8,435,000 Taxable General Obligation School Refunding Bonds (Alternate Revenue Source), Series 2021B

Municipal bond financing offers a stable and reliable source of low cost funding for communities across our country as they work to improve their local infrastructure base and create jobs. Today, more than ever before, our communities need a healthy and vibrant municipal bond market to help them grow and prosper.     Taylorville, IL […]

Perspective for Advisors: Muni Duration & Sharpe Ratio Analysis

Municipal bonds are known for their credit preservation characteristics (and certainly have proved their worth during today’s crisis), but another less known attribute of the asset class is their ability to mitigate duration.1 Duration is one of the primary measures of risk for a bond portfolio and certainly a focal point for today’s portfolio managers. […]

City of Waukegan | Lake County, Illinois | $12,815,000 General Obligation Bonds, Series 2021A and $31,180,000 General Obligation Bonds, Series 2021B

Municipal bond financing offers a stable and reliable source of low cost funding for communities across our country as they work to improve their local infrastructure base and create jobs. Today, more than ever before, our communities need a healthy and vibrant municipal bond market to help them grow and prosper.   City of Waukegan […]

2021 Municipal Outlook and Year-end Review

Apparent Risk in Municipal Bond Land In December 2019 we released Unapparent Risk in Municipal Bond Land which recapped a solid year of performance and warned investors of the underlying risks within the municipal market. We did not expect those risks to come to fruition so quickly, but they certainly became apparent three months later […]

Perspective for Advisors: Opportunity in Taxable Municipal Bonds

Taxable municipal bonds (taxable at the federal – and oftentimes state – income level) have historically lacked investors’ attention due to limited supply and presence in a market dominated by investors seeking non-taxable income. Supply has skyrocketed in recent years due to aspects of the 2017 tax reform bill, low nominal interest rates and a […]