Finding Value in the Bond Market: 2026 Outlook

Warren Pierson recently joined Money Life with Chuck Jaffe to discuss why 2026 may offer one of the most compelling bond market environments investors have seen in years. In the interview, Warren highlights how key macro factors are shaping fixed income opportunities for investors. Pierson emphasized that “we still see good value in the bond market…and investors don’t have to take a lot of risk to get that value.”

Why Bonds Still Offer Strong Value

Baird's fixed income team finds compelling opportunities in high-quality bonds with their attractive yields and risk-adjusted return potential. Warren explained how investors can tap into these opportunities even as economic uncertainty persists.

Listen to the complete conversation

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The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the data quoted.

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.

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