Mid-Quarter Fixed Income Q&A
Join the leaders of our fixed income funds for an update on our current views of the bond market including:
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
Past performance is not a guarantee of future results. Portfolio
composition is subject to change and may not be representative of the Fund's
current or future investments.
The Funds receive credit quality ratings on portfolio securities
when available from credit rating agencies. The Funds themselves have not been
rated by a credit rating agency. Ratings and portfolio credit quality may
change over time. A security is “investment grade” when it has received a
credit quality rating of at least BBB. If a security has received different
ratings from more than one rating agency, then the highest rating is used.
Mortgage related securities issued and guaranteed by government sponsored
agencies such as Fannie Mae and Freddie Mac are generally not rated by rating
agencies. Securities which are not rated do not necessarily indicate low quality.
Fannie Mae's and Freddie Mac's senior long-term debt are currently rating Aaa
and AAA by Moody's and Fitch, respectively.
Definitions: Investment Grade Bonds are those securities
rated at least BBB- by one or more credit ratings agencies. Non-Investment
Grade Bonds are those securities (commonly referred to as “high yield” or
“junk” bonds) rated below BBB- by two or more credit ratings agencies. Yield
to Worst (YTW) is the lowest potential yield that can be received on a bond
portfolio without the issuers actually defaulting. An asset-backed
security (ABS) is an investment security—a
bond or note—which is collateralized by a pool of assets, such as loans,
leases, credit card debt, royalties, or receivables.
Consider these risks before investing: All
investments involve risks, including possible loss of principal. 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 Weitz Funds› prospectus for a further discussion of risks.