Understanding Edge

Decoding the Fed's 50 Basis Point Cut: Implications for Fixed Income

The Fed has made its first rate cut. What does it mean for fixed income markets? Listen to our latest podcast with Douglas Gimple as he breaks down the implications for mortgages, ABS, and investment opportunities.

CMBS or commercial mortgage-backed securities are fixed-income investment products that are backed by mortgages on commercial properties rather than residential real estate.

OAS or option-adjusted spread is the measurement of the spread of a fixed income security rate and the risk-free rate of return, which is then adjusted to take into account embedded options.

The views expressed are those of the speakers as of September 2024 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Jackson Hole Takeaways: A Fixed Income Perspective

Fed signals rate cuts ahead: What does it mean for fixed income? Explore Jackson Hole takeaways, market volatility, and investment opportunities in our latest podcast with fixed income expert Douglas Gimple. (24 min podcast)

The views expressed are those of the speakers as of August 2024 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Uncovering Opportunities in Commercial Real Estate: The Power of Location

In this episode of Understanding Edge, senior portfolio specialist Douglas Gimple discusses the latest from the fed. He also shares his current insight into the commercial real estate market, and why it may not be all bad. (21 min podcast)

Exploring Health Care's Frontier: Biotech, GLP-1s and Global Pricing Dynamics

From biotech's rebound to the next frontier for GLP-1 drugmakers, Chendhore Veerappan, PhD, CFA, our health care research analyst, delves into the trends and investment opportunities unfolding in this dynamic sector. Tune in to our latest podcast!

As of 30 April 2024, Diamond Hill owned shares of Abbott Laboratories and Roche Holdings AG.

SPDR^® S&P^® Biotech ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P^® Biotechnology Select Industry^TM Index.

The views expressed are those of Diamond Hill as of May 2024 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

April Fixed Income Insights: Understanding Market Dynamics

In this episode of Understanding Edge, we discuss the Fed's recent meeting and the latest outlook on inflation and rates. We also explore the recent performance of various sectors within the fixed income market.

Bonds rated AAA, AA, A and BBB are considered investment grade.

Bloomberg US Aggregate Bond Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). Bloomberg US Corporate Index measures the performance of the US investment grade fixed-rate taxable corporate bond market. Bloomberg US Securitized Index measures the performance of the securitized sector of the Bloomberg US Aggregate Bond Index. Bloomberg US Mortgage-Backed Securities Index measures the performance of fixed-rate agency mortgage-backed pass-through securities guaranteed by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). Bloomberg US ABS Index measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. Bloomberg US Non-Agency CMBS Index measures the market of US non-agency conduit and fusion CMBS deals with a minimum current deal size of $300 million. The indexes are unmanaged, include net reinvested dividends, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer. 

The views expressed are those of Diamond Hill as of May 2024 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

The JRo Show: Interview With Win Murray

Our director of research, Win Murray, discusses identifying investment talent, how a research team should operate, what makes a great analyst and more. (78 min podcast)

 

Diamond Hill’s total assets were $30.3 billion as of 29 February 2024

For Important information on Diamond Hill Funds, click here.

The Diamond Hill Funds are distributed by Foreside Financial Services, LLC (Member FINRA).

The views expressed are those of Diamond Hill as of March 2024 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

It Ain’t Over Until It’s Over: A Look at the Fixed Income Markets in 2024

Senior Portfolio Specialist Douglas Gimple shares his insights on the fixed income markets. Tune in to hear about the latest from the Fed, market expectations, CMBS, and more.

Bonds rated AAA, AA, A and BBB are considered investment grade.

Bloomberg US Aggregate Bond Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). Bloomberg US Corporate Index measures the performance of the US investment grade fixed-rate taxable corporate bond market. Bloomberg Non-Agency US CMBS Investment Grade Index measures the market of US Non-Agency conduit and fusion CMBS deals with a minimum current deal size of $300mn. The indexes are unmanaged, include net reinvested dividends, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer.

MOVE Index, or Merrill Lynch Option Volatility Estimate Index, measures interest rate volatility in the US Treasury market. It is calculated from options prices, which reflect the collective expectations of market participants about future volatility.

Yield to Worst is the lowest potential bond yield received without the issuer defaulting, it assumes the worst-case scenario, or earliest redemption possible under terms of the bond.  

The views expressed are those of Diamond Hill as of March 2024 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

The Fed vs. the Market: Decoding Mixed Signals

Senior portfolio specialist Douglas Gimple discusses the market's ongoing desire to fight the Fed on rate cuts. Get insights into the latest from the FOMC, inflation and opportunities in fixed income in our podcast.

Bonds rated AAA, AA, A and BBB are considered investment grade.

ICE BofA AAA and BBB CMBS indexes measure the performance of US dollar denominated investment grade rated commercial mortgage-backed securities publicly issued in the US domestic market. These subsets include all securities with a given investment grade rating AAA and BBB, respectively. ICE BofA AAA and BBB Corporate indexes measure the performance of US dollar denominated investment grade rated corporate debt publicly issued in the US domestic market. These subsets include all securities with a given investment grade rating AAA and BBB, respectively. The indexes are unmanaged, include net reinvested dividends, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures for a full copy of the disclaimer.

The views expressed are those of Diamond Hill as of February 2024 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.

Making Sense of the Bond Market Rally and What Comes Next

Tune into our podcast with senior portfolio specialist Douglas Gimple, as he discusses the latest from the Fed, what drove the November fixed income rally, and opportunities that await investors heading into 2024.

Examining the Fed, Inflation and Interest Rates: An Update for Fixed Income Investors

In our recent podcast, we unpack the latest from the Fed, inflation outlook, interest rate forecast, and more. Discover historical context on tightening cycles and fixed income returns over 3 years post-hikes. Plus, a deep dive into risks, opportunities and attractive areas of the bond market.

 

Bonds rated AAA, AA, A and BBB are considered investment grade.

Bloomberg US Aggregate Bond Index measures the performance of investment grade, fixed-rate taxable bond market and includes government and corporate bonds, agency mortgage-backed, asset-backed and commercial mortgage-backed securities (agency and non-agency). Bloomberg US CMBS AAA Index measures the market of US agency and US non-agency conduit and fusion CMBS deals rated AAA with a minimum current deal size of $300 million. Bloomberg US Corporate A-Rated Index measures the single-A rated, fixed-rate, taxable, corporate bond market. The indexes are unmanaged, market capitalization weighted, include net reinvested dividends, do not reflect fees or expenses (which would lower the return) and are not available for direct investment. Index data source: London Stock Exchange Group PLC. See diamond-hill.com/disclosures a full copy of the disclaimer 

The views expressed are those of Diamond Hill as of November 2023 and are subject to change without notice. These opinions are not intended to be a forecast of future events, a guarantee of future results or investment advice. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.