Asset Management

When Measuring Bond Performance, It’s All Relative

May 10, 2013

Barnet Sherman, director and portfolio manager of the TIAA-CREF Tax-Exempt Bond Fund, is a regular contributor to the Intelligent Investing series on In his latest post, Barnet explains how he measures the performance of municipal bonds by using a tool he developed called “4 Square Analysis.” The tool quickly shows how an individual bond has performed versus a benchmark over time. While the tool is handy for determining relative value versus a benchmark, there are many variables that could impact the price of individual bonds including market demand, recent new issuance, interest rates and general market cycles. Using the tool, Barnet can measure a bond’s performance versus a benchmark over time and determine whether holding onto it makes sense while also taking these many other variables into consideration.

To learn more about measuring municipal bond performance using Barnet’s 4 Square Analysis tool, read Barnet’s latest post.