Bernardi Launches Environmental Risk Index for Municipal Bond Portfolios

▤ Summary

Bernardi Securities has introduced the Environmental Risk Index, a proprietary tool that scores all U.S. counties on natural-disaster risk for municipal bond analysis. The index combines FEMA hazard data with county insurance non-renewal rates to create a credit-focused view of geographic risk. Bernardi argues that the new measure better reflects municipal credit risk than FEMA's existing ranking because it removes economic value from the formula. The firm also highlights a potential valuation opportunity in Midwestern issuers, which it says trade wider despite stronger fundamentals. The release is informational and frames ERI as a complementary analytical tool rather than investment advice.

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