Insights & Commentary

Municipal Yields Rise as the Curve Inverts Further in April

Treasury Yields Stabilize Despite Sticky Inflation Data and Looming Debt Ceiling Uncertainty

The portfolio outperformed the Russell 2500 Growth Index in Q1 2023. Our strategy is off to a nice start in 2023, driven by numerous stocks across several sectors

The portfolio outperformed the Russell MidCap® Growth Index in Q1, where strength was fairly broad-based and relatively consistent during the risk-on/risk-off trading behavior of the overall market.

Our Funds outperformed their benchmarks in Q1; a rotation back to growth stocks led equity markets with stock selection driving the funds’ strong performance.

An era of low inflation and low interest rates has ended. Inflation is running at its fastest pace in decades in many places, and a range of central banks are pushing rates quickly higher.

Municipal Yields Decline in Q1 Led by Sharply Lower Rates in March

Large Market Swings as Fed Forced to Balance Inflation Fight with Financial Stability Concerns

Treasury Yields Rose in February on Stronger than Expected Growth and Inflation Data

Tax-exempt Rates Rose in February, Reversing the January Decline

Solid Start to 2023 as Pace of Fed Rate Hikes Slow and Flows Turn Positive

Favorable Supply/Demand Backdrop Provides Strong Start for Municipals in 2023

The portfolio underperformed the Russell 2500 Growth Index in Q4 2022, where relative gains in some sectors were offset by relative declines in several others.

The portfolio underperformed the Russell MidCap® Growth Index in Q4, where the collective drag of several challenged sectors offset outperformance in other areas.

Chautauqua's growth funds ended the year with a strong fourth quarter. Health care stocks led the way as our funds delivered solid Q4 returns.

2022 Taxable Bond Market Review

2022 Municipal Market Review

Worldwide investing offers an expanded opportunity set.

Impressive Decline in Tax-exempt Rates in November

Bond Market Rallies Sharply on Additional Signs of Cooling Inflation

The portfolio underperformed the Russell 2000 Index fractionally during the quarter but has meaningfully outperformed the benchmark year-to-date.

Treasury Yields Climb Further as the Prospect for Additional Tightening Remains Intact

Rates March Higher with a Steepening Bias

The portfolio slightly underperformed in Q3 mostly due to its style positioning versus the benchmark, the Russell 2500 Growth Index.

The portfolio outperformed the Russell MidCap® Growth Index in Q3, where the benchmark started positive but ended negative after rising rates and murky economic outlook news.

As global stocks continued to suffer from inflation and supply chain disruptions during the period, Chautauqua's International and Global Growth Funds outperformed their benchmarks.

Treasury Yields Reach New 2022 Highs in September Capping a Difficult Quarter for Bonds

Rates Higher and Curve Flatter in Q3 on Committed Fed

Bond Yields Rise on Strong Data and Hawkish Fed Messaging

Municipal Rates Rise Led by Short-term Maturities, Flattening the Curve

Real GDP Declines in Back-to-Back Quarters, Fixed Income Rallies Sharply

Rates Fall Across Curve, Strong State Credits – Case in Point: Florida

Higher Rate Trend Continues in Q2, Municipal Curve Steepens

Upside Inflation Surprise Emboldens Hawkish Fed, Odds of Recession Rise

Investment Grade Bond Prices Rise as Fed Tightening Cools Economic Data

Mid-Month Pivot in Municipal Yields and Industry Fund Flows

Higher yields a bright spot for bond investors

Bond Yields Climb as a More Hawkish Fed Signals Steepest Hiking Cycle Since Mid-1990s

Inflation and Outflows Cause Parallel Shift Higher in Municipal Curve

Fed Rate Hikes Officially Begin, Treasury Yields Surge in March Capping a Difficult Quarter

Sharp Rate Rise, Curve Flattening Significantly Improves Tax-exempt Income and Valuations

Russian Invasion of Ukraine Moves Markets, Credit Spreads Wider in February, Returns Negative

Rates Rise and Curve Flattens on Fed and Geopolitical Uncertainty, Municipal Credit Strength Limits Spread Widening, Negative Returns in February on Rising Rates; Lower-Quality Underperforms

After years of consistent outperformance, Growth stocks have lagged Value stocks since November 2020. Will this rotation to Value represents a secular change in market leadership?

Fed Articulates Faster Path of Policy Tightening to Fight Inflation; Yields Climb Sharply, Credit Spreads Widen; Agency RMBS Model Changes, January Returns Negative Across the Board

Liquidity Fades on Selling Pressure Driving Municipal Yields Sharply Higher, Puerto Rico Exits Bankruptcy, Sharply Negative Returns to Start 2022

Baird Advisors sees a more complex and challenging municipal market environment ahead that will require a multi-faceted strategy—more like chess than checkers—to successfully navigate.

Baird Advisors provides timely insights about the current interest rate environment for the baby boom generation.

Baird Funds Senior Portfolio Managers Duane McAllister, CFA, and Lyle Fitterer, CFA, provide insight into how staying with municipals can provide resiliency through uncertainty.

In our latest whitepaper our investment team provides insights into why it’s important to maintain a high-quality bias in the municipal market until the outlook is more certain.

Baird’s fixed income team illustrates how the moderate tax rate investors can benefit by investing in both the taxable and tax-exempt markets in their fixed income allocations.