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.