Sources: Deutsche Bank, Federal Reserve Bank of St. Louis, Bloomberg.
1Non-qualified mortgages are non-standard mortgages for borrowers that do not meet requirements of typical qualified mortgages, i.e., alternative income documentation, higher debt limits, higher down payments, etc.
2SASB — Single asset, single borrower. CRE CLO — Commercial real estate collateralized loan obligation.
Bonds rated AAA, AA, A and BBB are considered investment grade.
ICE BofA CMBS Fixed Rate AAA 7-10 Year Index measures the performance of US dollar denominated AAA-rated commercial mortgage-backed securities with a remaining term to maturity of greater than or equal to 7 years and less than 10 years in the US domestic market. ICE BofA Single-A US Corporate Index measures the performance of US dollar denominated A-rated corporate debt publicly issued in the US domestic market. S&P/Case-Shiller US National Home Price Index measures changes in the total value of all existing single-family housing stock.
See diamond-hill.com/disclosures for a full copy of the disclaimer.
The views expressed are those of Diamond Hill as of September 2023 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.
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