Market Commentaries

Perspective for Advisors | Tax Loss Swap into a SMA

September 2022

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 …


Market Update: Municipal Yield and Valuation Overview

August 2022

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-g …


Perspective for Advisors: Bonds are Back!

April 2022

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 …


Municipal Market Update – Bonds are Back!

April 2022

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 …


Yield Curve Historical Perspective & Municipal Market Update

February 2022

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 …


37 YEARS

December 2021

of serving Investors, Issuers, and the Municipal Bond Market    THANK YOU. We wish you and your family a healthy and prosperous 2022 and offer our profound “thank you” for your continued confidence in the Bernardi team. We greatly appreciate the o …


End of Easy and its Implications for the Municipal Bond Market

September 2021

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 potentia …


Market Summary & Relative Value of (Municipal) Bonds

August 2021

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 th …


Municipal Bond Past, Present & Future | 2020’s Stress Test and What Lies Ahead

June 2021

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. Fede …


Perspective for Advisors: Muni Duration & Sharpe Ratio Analysis

April 2021

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 pr …


2021 Municipal Outlook and Year-end Review

January 2021

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 …


Perspective for Advisors: Opportunity in Taxable Municipal Bonds

December 2020

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 skyrockete …


Update: COVID-19 and its Impact on Municipal Credit (Part III)

September 2020

September 28, 2020 In Part III of our municipal credit commentary pertaining to the health and economic crisis brought on by COVID-19 we overview the most recent data available pertaining to state revenue surveys and data from municipalities within the …


Perspective for Advisors: Separately Managed Accounts Prove Their Worth

May 2020

In March 2020, the COVID-19 crisis caused dislocations across world financial markets. The municipal market was not sheltered from this chaos. At the end of February, tax-free yields were sub-1% out to 11-year maturities. In mid-March, municipal bond p …


Unique Economic Challenges of COVID-19: The Evolving Impact on Municipal Credit, Part II

April 2020

The effects of COVID-19 on the nation are far different than prior natural disasters in the recent history of the United States and continue to evolve with each day. We are still learning and reacting. The national impact is significant as evidenced by …