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.

From proposed housing and credit card reforms to expanding securitized issuance, Fixed Income Portfolio Specialist Douglas Gimple breaks down what’s new in bond markets — and what it means for investors. (22 min podcast)

From auto loans to home equity lines, Douglas Gimple explains why the securitized market remains a fertile ground for active managers — and how consumer trends, credit enhancements and benchmark gaps are shaping today’s fixed income landscape. (47 min podcast)

DISCLOSURES

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). 

ABS – Asset-backed securities

CLO – Collateralized loan obligations

CRE CLO – Commercial real estate collateralized loan obligations

CMBS – Commercial mortgage-backed securities

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

The views expressed are those of the speakers as of November 2025 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. 

Portfolio Manager Arthur Cheng joins the Understanding Edge podcast to share his career journey, discuss dynamics in the high-yield market and reflect on the first year of Diamond Hill’s Core Plus Strategy. (21 min podcast)

Disclosure

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

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).

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

Past performance is not a guarantee of future results. Composite results reflect the reinvestment of dividends, capital gains and other earnings when appropriate. Net returns are calculated by reducing the gross returns by the highest stated fee in the composite fee schedule. Only transaction costs are deducted from gross of fees returns. To view a GIPS Report for all composites, click here.

The views expressed are those of the speakers as of September 2025 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.

Join us for a timely mid-year webinar where we examine the evolving landscape of interest rates, credit spreads and macroeconomic indicators shaping the bond markets in 2025. With central banks adjusting their course, inflation dynamics shifting and investor sentiment evolving, we’ll explore what these developments mean for fixed income investors.

Key topics will include:

Whether you're managing portfolios, evaluating fixed income products, or seeking to stay informed, this session will provide actionable insights and forward-looking perspectives to support your investment decisions.

Tariffs, Fed shifts and a newly normalized yield curve — Doug Gimple breaks down what fixed income investors need to know heading into the second half of 2025.

Dive into the recent events impacting fixed income markets with Douglas Gimple. Explore topics including the Fed, tariffs and inflation. (24 min podcast)

Explore insights from portfolio manager Arthur Cheng, CFA, on high-yield markets and their role in the Core Plus strategy. He also discusses what risks investors should be watching for and where opportunities might arise in today’s dynamic environment.

DISCLOSURES

The performance data quoted represents past performance and is not indicative of future results.

The discussion of specific portfolio holding(s) performance is provided gross of fees and should be viewed in conjunction with the net of fee returns provided for the entire strategy.

Performance for the strategies are available here: Core Bond and Core Plus. Securities referenced may not be representative of all portfolio holdings. Listeners should not assume that an investment in the securities was or will be profitable.

Credit ratings are an estimate of the level of risk involved in lending money to a business or other entity. Bonds receive credit ratings before they are issued. While each rating agency uses a slightly different scale, they assign ratings as letter grades. In general, a rating of AAA is the highest possible credit rating, while a C or D rating is the lowest.

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

As of 31 March 2025, Diamond Hill owned shares of Bank OZK.

As of 28 February 2025, Diamond Hill owned debt of Bank OZK, Brundage-Bone Concrete Pumping, Adient Global Holdings, Bread Financial Holdings.

As of 31 January 2025, Diamond Hill owned shares of Concrete Pumping Holdings Inc.

Bloomberg US Corporate High Yield Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the indices’ EM country definition, are excluded.

The views expressed are those of the speakers as of April 2025 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. 

Explore how tariffs and inflation are shaping 2025's market volatility. Hear from Douglas Gimple as he discusses fixed income strategies to manage risks and seize opportunities in an evolving market landscape. (23 min podcast)

The views expressed are those of the speakers as of March 2025 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 Federal Reserve is navigating inflation, political pressures and shifting market expectations. Dive into how they are making data-driven decisions and what this means for fixed income investors.

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 Corporate High Yield Bond Index measures the USD-denominated, high-yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. 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. 

S&P 500 Index measures the performance of 500 large companies in the US. Nasdaq Composite Index measures the performance of more than 3,000 securities and is heavily weighted in technology stocks.

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

The views expressed are those of the speakers as of February 2025 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.