DHIL - Diamond Hill Short Duration Securitized Bond Fund Q1 2024 Market Commentary

2024-05-16 01:01:00 ET

Summary

• Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
• Stronger-than-expected economic reports about the labor market and inflation spurred interest rates higher, generating negative returns for the overall fixed income markets in Q1 2024.
• The index’s performance reflected interest rate movements as the 10-year Treasury climbed from 3.88% at the end of 2023 to finish February at 4.25% before maintaining some stability in March to finish the quarter at 4.20%.
• Inflation remained stubborn, dropping slightly from January’s year-over-year number of 3.9% to 3.8% in February and March.

Resilient Labor Market, Stubborn Inflation Test Fed’s Rate Cut Path

2023 finished on a powerful note, fueled by near-historic performance in November and December, pushing the Bloomberg US Aggregate Bond Index into positive territory and potentially setting the tone for an ongoing recovery from 2022’s challenges. Alas, this was not to be the case....

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