Return to Normal: Understanding Bonds in Today’s Market

Warren Pierson, Co-CIO at Baird Advisors, recently sat down with Ryan Nauman and the Adjusted for Risk podcast live from the Morningstar Investment Conference. During the discussion, they explored bonds relevance in today’s economic landscape, insights into how investors can navigate the current yield environment, credit risks and Federal Reserve policy shifts.

Listen to the full podcast on WealthManagement.com

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 directly at 866-442-2473. Please read the prospectus or summary prospectus carefully before investing.

Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risk such as interest rate risk, regulatory risk, credit risk, inflation risk, call risk, default risk, political risk, tax policy risk and liquidity risk. In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed income securities generally increase.

Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates. Ratings are measured on a scale that ranges from AAA or Aaa (highest) to D or C (lowest). Investment grade investments are those rated from highest down to BBB- or Baa3. High yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield.

The commentary provided does not provide a complete analysis of every material fact regarding any market, industry, security or portfolio. Information in this document regarding market or economic trends, or the factors influencing historical or future performance, reflects the opinions of management as of the date of this document. These statements should not be relied upon for any other purpose.