2013 Municipal Bond Scare: Exits & Opportunities


Recorded September 18, 2013 

The bond market dropped dramatically in the second quarter – arguably the sharpest adjustment since the fall of 2008. For those forced to sell during the tumult, it was just as painful. But for others, it may be an equivalent buying opportunity. 

Please join us for a discussion on key 2013 topics: 

  • Detroit default in proper perspective. Detroit hasn’t been on the Bernardi approved credits list for decades, but its default has renewed municipal debt crisis fears nonetheless. We’ll put the largest municipal bankruptcy filing to date in the proper context.
  • The Great Rotation debate. Some pundits claim increasing yields mark the start of the “Great Rotation” from bonds into equities, but no one can be certain at this point. “Mattress money” may rotate more to cash out of fear – or within bonds to new buying opportunities.
  • Laddered portfolios vs. alternatives as bond prices fall, yields rise. Our clients’ separate account, laddered portfolios almost universally handled last quarter’s turmoil much better than the broader bond market – a storyline similar to that of the 2008-2009 financial crisis. We’ll compare laddered portfolios to alternatives such as bond funds and simply holding cash as ways to prepare for future volatility.  


  • Matt Fabian, Managing Director, Municipal Market Advisors
  • Ronald P. Bernardi, President & CEO, Bernardi Securities 
  • Scott Rausch, CFA, Portfolio Manager, Bernardi Securities 
  • Rick Gerali, Vice President, Bernardi Securities (moderator)