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.