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 […]
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 […]
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 […]
Ron Bernardi was quoted in the Bond Buyer article “Investors flock to municipal bonds for yield and shelter” Read here
We are pleased to announce the opening of our new corporate headquarters in Northfield, Illinois, one of Chicagoland’s premier northern suburbs. Our new mailing address is: 423 Central Avenue Northfield, Illinois 60093 All current telephone numbers remain unchanged. We are excited by our move because, in part, it underscores the remarkable growth […]
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 […]
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. […]
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 […]
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 […]
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 […]