Market Commentaries
Widest Municipal Yield Spread in Two Years, Bankruptcy Update
November 2011Municipal bond prices held up surprisingly well during the month, despite an increased supply of new municipal bond issues following months of low issuance.Municipal yield spread against Treasuries widest in two yearsThe 10 year, “A” rated MMD Index bo …
Municipal Market Progresses Unevenly
October 2011The municipal bond market showed more signs of progress in October, albeit unevenly – a persistent market narrative that creates opportunities for the disciplined and informed.State revenues growing despite property tax declinesThe macro economic pictu …
Yield Search Favors Municipal Market
September 2011After August outflows, the municipal bond market turned bullish once again in September with four weeks in a row of bond fund inflows – and the last week more than doubling the inflows of the previous week. The month also saw a couple of true superlati …
The Effect of a U.S. Rating Downgrade
September 2011After August outflows, the municipal bond market turned bullish once again in September with four weeks in a row of bond fund inflows – and the last week more than doubling the inflows of the previous week. The month also saw a couple of true superlati …
U.S. Downgrade Domino Threat
August 2011The prevailing August municipal bond market story was the threat posed by the U.S. rating downgrade. The improving state tax situation and the search for better yields also led municipal bond market news in the past month.Wholesale municipal rating dow …
Mid-Year Municipal Credit Update
July 2011In this commentary, we will summarize where municipal credit quality has been, where we believe it is today, and what our clients should expect over the near term investment horizon. The municipal market began the year with a tumultuous first quarter, …
The End Is Near
May 2011What Will it Mean to Municipal Bonds in 2011 and Beyond? As the economy expands, it is becoming clearer that we are nearing the end of the “easy money” policy that the Federal Reserve has pursued over the past few years. So what can we expect once the …
Calmer, Bullish Municipal Market: Opportunities Amongst Problems
May 2011Municipal bond prices continued their upward move during May resulting in lower yields across the maturity spectrum at month end. A calmer tone to our marketplace has set in over the past two months as much of the selling hysteria earlier in the year h …
Municipal Bond Supply & Demand Imbalance
April 2011The municipal bond market through the first three months of 2011 was particularly choppy, culminating in March with one of the most muddled trading environments we’ve experienced in quite some time. To discuss March’s performance, it’s important to exa …
“A Bond Market In Turmoil” Municipal Market Update
January 2011Michelle Bernardi Landis summarizes the key points of the President’s Letter below. There have been many news stories recently regarding the municipal bond market and its impending debt crisis. Most of them have been unnerving and intimidating. Ma …
Municipal Market Attractive for Some, Challenging for Others
January 2011Municipal bond yields ended the month at higher levels than where they began the month, resulting in a negative monthly total return number for most portfolios. This decline in portfolio value was more pronounced on higher duration portfolios and bond …
Continuing Municipal Bond Market Volatility
December 2010Volatility in the municipal market was significant during the last quarter and we expect it to continue into the foreseeable future. The fourth quarter of 2010 was brutal period for total return oriented municipal bond investors. The Barclays Capital M …
Municipal Bond Market Volatility
November 2010Municipal bond prices endured a considerable sell off during the month of November, before showing a rebound leading up to the Thanksgiving holiday. Four factors are key to understanding this volatility:Treasury weakness. Pronounced weakness in the Tre …
“In Municipals We Trust?”
November 2010Justin Formas, Director of Municipal Credit Research, summarizes the key points of the market update below. For an introduction to Justin Formas, please read the November 2010 President’s Letter. The United States municipal bond market has drawn a grea …
Credit Research Matters More Than Ever
November 2010As 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 pro …