Market Commentaries

Municipal Bonds and Infrastructure Development – Past, Present, and Future

August 2015

By Ronald P. Bernardi We thought you might find the attached white paper interesting.  It is sponsored jointly by GFOA and IMCA and is authored by Justin Marlowe, professor at the University of Washington. The paper describes the important role tax-exe …


An Investor’s Duck Test

August 2015

By Matthew P. Bernardi “If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.” This straightforward method of reasoning can often help one gain a better understanding of the intricate – yet ubiquitous – financi …


Interest Rate Lift-Off?

July 2015

By Jeffrey D. Irish It appears the Federal Reserve Bank is about ready to start raising short-term interest rates. What will happen to longer-term yields when the Fed begins the ‘tightening process’ is anybody’s guess. Anything can happen of course, bu …


Turning 30 — A Milestone Year

January 2015

By Ronald P. Bernardi We thank our clients and others who count on us and wish everyone a healthy and prosperous 2015. This past November marked the beginning of our thirtieth year in business. Today, I want to share a few thoughts with you, some of wh …


Detroit and Stockton Emerge from Chapter 9 – A Few Facts, Observations and Takeaways

November 2014

By Ronald P. Bernardi Stockton, California emerged from Chapter 9 on October 30, 2014 when U. S. Bankruptcy Judge Christopher M. Klein confirmed Stockton’s plan. Detroit, Michigan emerged from bankruptcy on November 7, 2014 when U.S. Bankruptcy Judge S …


Municipal Bond Specialists for 30 Years — Our Founder Gives Thanks for Bernardi’s Mission

November 2014

By Edward Bernardi As we begin to celebrate our 30th anniversary, I have been asked to give you a review of our firm’s history, guiding principles and some of the changes I have seen in the municipal bond market. I have been in this business for over 5 …


Premium Municipal Bonds: Benefits in a Rising Rate Environment

October 2014

By Matthew P. Bernardi Many investors find it difficult to pay a price greater than par for a bond. We often find this hesitation is purely psychological and causes some investors to miss an advantageous structure in a low interest rate environment. Th …


Premium Municipal Bond Benefits in a Rising Rate Environment

October 2014

Many investors find it difficult to pay a price greater than par for a bond. We often find this hesitation is purely psychological and causes some investors to miss an advantageous structure in a low interest rate environment. This market commentary is …


Municipal Securities as High Quality Liquid Assets (HQLA)

September 2014

By Ronald P. Bernardi For many months, we at Bernardi Securities have closely followed the issue of municipal securities and their status as a high-quality liquid asset (HQLA) for commercial banks and nonbank systemically important financial institutio …


Detroit settles with UTGO creditors – BOND is Right Side Up! Still “Waiting for Godot”

April 2014

By Ronald P. Bernardi Detroit Settles on UTGO Debt The family vacation photo that made its debut this past December, “Will Detroit turn BOND upside down?”, returns today, right side up. Last week Detroit reached a settlement with three bond insurers ov …


The Problem with Waiting for the “Fed” to Raise Rates

March 2014

Following Janet Yellen’s recent testimony, many investors may just want to wait for Federal Reserve policy makers to raise interest rates before committing money to the bond market. After all, the fed funds rate has been held in the 0% to 0.25% range f …


The Problem with Waiting for the “Fed” to Raise Rates

March 2014

By Jeffrey D. Irish Following Janet Yellen’s recent testimony, many investors may just want to wait for Federal Reserve policy makers to raise interest rates before committing money to the bond market. After all, the fed funds rate has been held in the …


2013 Municipal Bond Wēijī: Does Crisis Equal 2014 Opportunity?

January 2014

The municipal bond market’s behavior in 2013 could be summed up by the old saying that the Chinese word for “crisis” – wēijī – is actually composed of two characters representing “danger” and “opportunity.” John F. Kennedy is credited for popularizing …


Will Detroit turn BOND upside down?

December 2013

By Ronald P. Bernardi   Will the Detroit Chapter 9 bankruptcy turn the municipal bond world upside down? A random vacation photo captured this concern fairly well. With such a big question looming over the market, let’s review the ways in which th …


Perspective and Strategy Discussion

December 2013

Historical U.S. Treasury Bond Yield Curves Red Line = November 2003 (New, 30-yr. Treasuries were not being issued at this time) Orange Line = November 2008 Blue Line =  November 2013 (current) Green Line = November 2012  Over the years, we’ve talked ab …