The lack of progress on President Trump’s major agenda items has, so far, proven to be beneficial to the municipal market. A lack of borrowing to fund infrastructure and fading concerns over an overhaul of healthcare and taxes has led to the outperformance of municipals. At this point, a significant change in the political environment in Washington seems unlikely and should continue to provide a favorable backdrop for the municipal market in the second half of 2017. Yet the status quo may not be good for the market long-term.
In this commentary, Baird Advisors Senior Portfolio Manager Duane McAllister talks about how the municipal market has benefitted after the election of President Trump.
Investors should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, contact Baird Funds directly at 866-444-9012 or contact your Baird Financial Advisor. Please read the prospectus or summary prospectus carefully before investing.
Some of the potential risks associated with fixed income investments include call risk, reinvestment risk, default risk and inflation risk. Additionally, it is important that an investor is familiar with the inverse relationship between a bond’s price and its yield. Bond prices will fall as interest rates rise and vice versa.