Credit Research Matters More Than Ever

As Bernardi Securities, Inc. begins its 27th year, we are acutely aware of the importance of understanding the credit quality of the municipal bond issues we recommend to our clients. We have long believed the bond portfolio research and management process starts with credit analysis. Our long-time clients have heard us preach these three constants many times over the years in regards to their municipal bond investments:

  • Underlying credit quality matters
  • Deal purpose matters
  • Deal structure matters

These are the primary reasons we have dedicated significant firm resources for over two decades to our in-house municipal bond credit research department. In our experiences over the years, we have found that without in-depth, careful analysis, it is often very difficult to make suitable determinations regarding the three factors above. This commitment to credit research has served our clients well for the past 26 years, and in many respects we were at the vanguard of our industry in our approach to researching municipal bond credit quality.

The municipal finance landscape has changed dramatically over the last several years and we expect there is more change in front of us. So we continue to invest in this area – implementing new platforms and expanding our intellectual capital. These ongoing investments will allow us to continue to serve our clients in a manner consistent with our past performance.

To help us reach our goals, we are pleased to announce the addition of Justin Formas to our team. Justin joined Bernardi Securities, Inc. this past April and serves as Director of Municipal Credit Research. Justin’s primary role is to oversee our Credit Research Department and its processes as well as analyze municipal bond credit quality. Justin brings with him a wealth of knowledge and experience in the area of municipal bond credit analysis, having spent six years at Standard & Poor’s prior to joining us. Justin received his BS degree in Public Financial Management from Indiana University and earned his MBA degree in Financial Analysis from DePaul University. In addition, he holds the Chartered Alternative Investment Analyst designation. Justin is a member of the National Federation of Municipal Analysts and the International Association of Financial Engineers.

We believe Justin’s November 2010 market update on municipal disclosure and transparency will serve as a good introduction to him. 

As always we appreciate your continued support and confidence.

Ronald P. Bernardi
President and CEO
November 2010