Despite heightened geopolitical tensions, Treasury yields have moved higher and credit markets have remained remarkably resilient. Douglas Gimple explores what's driving this unusual market dynamic, the outlook for consumers and where he sees opportunities across mortgages and asset-backed securities.

DISCLOSURE

ABS — Asset-Backed Securities, GSE — Government-Sponsored Enterprise. Fannie Mae — Federal National Mortgage Association, Freddie Mac —Federal Home Loan Mortgage Association. Ginnie Mae — Government National Mortgage Association.

See diamond-hill.com/disclosures for index definitions, data sources and other definitions.

Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB.

S&P 500 Index measures the performance of 500 large companies in the US.

High Yield securities are below investment grade and involve greater risk of default.

Yield to worst is the lowest potential yield an investor may receive on a bond without the issuer defaulting.

Duration measures a bond’s sensitivity to changes in interest rates.

The views expressed are those of the speakers as of May 2026 and are subject to change. 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.