In an interview at the 2017 Morningstar Investment Conference, Baird Funds Senior Portfolio Manager Warren Pierson, CFA, talked with Moneylife's Chuck Jaffe about how investors should think about interest rates and the bond markets now.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
All investments carry some level of risk, including loss of principal. 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, credit risk, inflation 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. 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. Municipal securities may or may not be appropriate for all investors, especially those in the lower tax brackets. Robert W. Baird & Co.