Diamond Hill Core Bond Fund Q4 2025 Commentary

Diamond Hill Capital Management43 FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe Bloomberg US Aggregate Bond Index returned 1.10% during Q4, bringing year-to-date performance for the index to 7.30%, the best annual performance since 2020.The 30-year Treasury yield rose 11.3 bps in Q4 on uncertainty around the future path of inflation, ending the year at 4.84%.The investment-grade corporate market struggled in Q4, posting the lowest quarterly return of 2025 and the weakest result since Q4 2024.Higher-yielding, better-structured parts of securitized credit continued to offer more compelling relative value for managers willing to do the work on structure and collateral.Strong performance in non-agency residential mortgage-backed securities contributed to relative performance as the sector outpaced the overall benchmark return. rawintanpin/iStock via Getty Images Market review and outlook The Bloomberg US Aggregate Bond Index returned 1.10% during Q4, bringing year-to-date performance for the index to 7.30%, the best annual performance since 2020. After lowering the Fed Funds rate by 100 basis points (bps) in 2024This article was written byDiamond Hill Capital Management43 FollowersFollowDiamond Hill Capital Management, Inc. is a wholly owned subsidiary of Diamond Hill Investment Group, Inc.

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