Understanding Edge

Henry Song, CFA, joined Bloomberg’s FICC Focus podcast to discuss his team’s approach to credit investing, the current market landscape, why a focus on securitized assets can be beneficial, and more. (60 min podcast) Click here [https://www.diamond-hill.com/investment-strategies/documents/mutual-funds/] for Diamond Hill’s most recent fixed income fund holdings. Acronyms referenced: Asset-Backed Securities (ABS), Commercial Mortgage-Backed Securities (CMBS), Collateralized Loan Obligations (CLO), Great Financial Crisis (GFC), Investment Grade (IG), RMBS (Residential Mortgage-backed Securities). Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB. 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). The index is unmanaged, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return) and is not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures [https://www.diamond-hill.com/disclosures/] for a full copy of the disclaimer.  Risk disclosure: In general, when interest rates rise, fixed income values fall. Mortgage- and asset-backed securities are influenced by factors affecting the housing market and the assets underlying such securities. The securities may decline in value, face valuation difficulties and become more volatile and/or illiquid. They are also subject to prepayment risk, which occurs when mortgage holders refinance or repay loans sooner than expected, creating an early return of principal to loan holders. The views expressed are those of Diamond Hill as of 27 December 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 indicative of future results. Investment returns and principal values will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance quoted. For current to most recent month-end performance, visit diamond-hill.com. Carefully consider the Fund’s investment objectives, risks and expenses. This and other important information are contained in the Fund’s prospectus and summary prospectus, which are available at diamond-hill.com or calling 888.226.5595. Read carefully before investing. The Diamond Hill Funds are distributed by Foreside Financial Services, LLC (Member FINRA). Diamond Hill Capital Management, Inc., a registered investment adviser, serves as Investment Adviser to the Diamond Hill Funds and is paid a fee for its services. Not FDIC insured | No bank guarantee | May lose value

From golden handcuffs to home equity innovations: Discover how today's unique housing market is reshaping fixed income opportunities. Join us for an insightful discussion on rate dynamics, securitization trends, and what's ahead 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). The index is unmanaged, includes net reinvested dividends, does not reflect fees or expenses (which would lower the return) and is not available for direct investment. Index data source: Bloomberg Index Services Limited. See diamond-hill.com/disclosures [https://www.diamond-hill.com/disclosures/] for a full copy of the disclaimer.  The views expressed are those of the speakers as of November 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 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.

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.

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)