Baird's Diederich: Yields look attractive amid short-term inflation rise

Gabe Diederich, portfolio manager at Baird, says that long-term indicators for inflation haven't moved much, which is good news for bond investors interested in capturing steady income for the long haul. He says in the Big Interview that he expects the Federal Reserve to wait on rate changes — so long as the economy and labor market remains stable — until there is more clarity and certainty in the numbers. Diederich says that fundamentals for bonds across the spectrum look solid, but he says "There's a great story for the tax advantage of municipal bonds," and that investors should look to take advantage of the tax benefits to generate real income and stabilize portfolios.

Kevin Callahan, founding partner, Fairway Capital Management — portfolio manager for the Fairway Private Equity & Venture Capital Opportunities Fund — talks about whether concerns in the private credit markets are bleeding into the venture-capital and private-equity space, and what lies ahead for alternatives markets, particularly as older technology investments made just a few years ago are looking less attractive in the face of artificial-intelligence developments today.

Todd Rosenbluth, head of research at VettaFi, highlights the brand new Morgan Stanley Bitcoin Trust, and what the entrance of one of the world's biggest money managers to the crypto ETF space — introducing the lowest-cost spot bitcoin fund — means for investors and the industry.