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Video Insights

Opportunities in CLOs Amid a Low-Rate Environment

In the current low-rate fixed income environment, investors are searching for opportunities outside of the broad indexes. Weitz Investment Management fixed income portfolio managers Tom Carney, CFA, and Nolan Anderson explain why corporate collateralized loan obligations (CLOs) are proving to be attractive options for their bond portfolios. The two share their view on the interest rate landscape, inflation, and bond market expectations going forward.

View the full video transcript here.

 

 

Fixed Income Insights / 04.20.2021

What a Difference a Year Makes

The old saying “what a difference a year makes,” might be a cliché, but it accurately reflects the great disparity from the chaos of 2020 to the optimism of 2021. But with a future still filled with uncertainty, we continue to move our fixed income funds forward on a defensive path. 
Market Perspectives / 03.03.2021

A Defensive Stand

The bond market selloff in early 2021, served as a valuable reminder of the importance of active management and helped to demonstrate why we take a disciplined approach to the balance of risk and return. The Weitz fixed income team explains why the selloff helps to show that a good defense is the best offense in fixed income investing.

 


 

The opinions expressed are those of Weitz Investment Management and are not meant as investment advice or to predict or project the future performance of any investment product. The opinions are current through the date of publication, are subject to change at any time based on market and other current conditions, and no forecasts can be guaranteed. This commentary is being provided as a general source of information and is not intended as a recommendation to purchase, sell, or hold any specific security or to engage in any investment strategy. Investment decisions should always be made based on an investor's specific objectives, financial needs, risk tolerance and time horizon.

Past performance is not a guarantee of future results.

Holdings are subject to change and may not be representative of a Fund's current or future investments.

Yield to Worst refers to the lowest potential yield (most conservative yield) that can be received on a bond without the issuer actually defaulting. YTW is calculated by using worst-case scenario provisions, including prepayments, calls and sinking funds. Furthermore, YTW is a forward-looking estimate that ignores capital gains.

Interest rate risk and duration: The shorter a fund's duration, the less sensitive it will be to shifts in interest rates. As of 03/31/21: Weitz Core Plus Income Fund had an average effective duration of 4.5 years compared to its benchmark of 6.3 years, and Weitz Short Duration Income Fund had an average effective duration of 1.3 year compared to its benchmark at 1.9 years.

Consider these risks before investing: All investments involve risks, including possible loss of principal. Market risk includes political, regulatory, economic, social and health risks (including the risks presented by the spread of infectious diseases). Changing interest rates may have sudden and unpredictable effects in the markets and on the Fund's investments. The Fund may purchase lower-rated and unrated fixed-income securities, which involve an increased possibility that the issuers of these may not be able to make payments of interest and principal. See the Fund's prospectus for a further discussion of risks.

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