Understanding Edge

Reading Between the Spreads: Corporate Debt Dynamics in Shifting Markets

In our latest podcast, we discussed Fed policy, corporate bonds, and our #fixedincome market outlook with Douglas Gimple. Listen as we break down market dynamics, risks and areas of opportunity. (27 min podcast)

Bonds rated AAA, AA, A and BBB are considered investment grade.

Bloomberg US Corporate Index measures the performance of the US investment grade fixed-rate taxable corporate bond market. 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 CMBS Fixed Rate BBB 7-10 Year Index measures the performance of US dollar denominated BBB-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.

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.

Global Investment Expeditions, Part 2: A Journey Through Scandinavia, Canada and India

Our international analysts recount learnings and insights from recent travels to Scandinavia, Canada, India and other destinations. Hear their first-hand experiences exploring local markets, researching investment prospects and meeting with management teams. (20 min)

As of 31 August 2023, Diamond Hill owned shares of Canadian Natural Resources Ltd.

The views expressed are those of Diamond Hill as of August 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.

 

Global Investment Expeditions – Part 1, Exploring Japanese Culture and the Stock Market

Our international analysts shared their insights from recent research trips around the world. In this two-part series, they explore Japan, Scandinavia, Canada and India. In Part 1, we focus on Japan.

As of 31 July 2023, Diamond Hill owned shares of Howden Joinery Group plc.

The views expressed are those of Diamond Hill as of August 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.

Staying Strong or Showing Stress? An Update on the Consumer

The debt ceiling debate, ongoing tightening cycle and a banking crisis have created volatility in financial markets. How is the consumer faring amid this uncertainty? Listen to our recent podcast to learn more.

The views expressed are those of the speakers as of June 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.

Bond Market Spotlight: Commercial Mortgage-Backed Securities

Catch up on the latest updates in the CMBS market and May’s Fed meeting in this recent podcast with Senior Portfolio Specialist Douglas Gimple.

Bloomberg US Financial Institutions Index measures the performance of the financial institutions sector of the Bloomberg US Aggregate Bond Index. 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 CMBS Investment Grade Index measures the market of US agency and US non-agency conduit and fusion CMBS. 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 full disclaimers.

As of 28 February 2023, Diamond Hill owned debt in Huntington Bancshares Inc., Citizens Bank NA, JPMorgan Chase & Co., Apple Inc., Amazon.com Inc. and Walmart Inc.

The views expressed are those of the speakers as of May 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.

Leveling Up in the Video Game Market

Video game demand benefited from the stay-at-home days of the pandemic. Demand has waned, but the industry has been resilient in weaker economic environments. Learn what’s driving growth in this underappreciated market.

 

As of 31 March 2023, Diamond Hill owned shares of Microsoft Corp and Take-Two Interactive Software Inc.

 

The views expressed are those of the speaker as of April 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.

Long-Short Investing: A Straightforward Approach in a Complex Environment

Volatility in the tech space, meme stocks and a rising rate environment — Long-Short PM Nate Palmer, CFA, discusses these topics and more in our latest podcast.

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. 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

Risk disclosure: The portfolio uses short selling which incurs significant additional risk. Theoretically, stocks sold short have the risk of unlimited losses. Overall equity market risks may affect the portfolio’s value.

For standardized performance, expenses and important information, click here.

Click here to view a complete list of holdings for the Long-Short Fund as of 31 March 2023.

The Diamond Hill Funds are distributed by Foreside Financial Services, LLC (Member FINRA).

Russell 1000 Index measures the performance of roughly 1,000 US large-cap companies. Bloomberg US Treasury Bills 1-3 Month Index measures the performance of US Treasury bills with time to maturity between 1 and 3 months. The indexes are unmanaged, market capitalization weighted, 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: London Stock Exchange Group PLC and Bloomberg Services Limited. See diamond-hill.com/disclosures/ for full disclaimers.

The views expressed are those of the speakers as of April 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.

 

Bond Markets – With Great Volatility Comes Great Opportunity

After a quick start to the year, fixed income markets slowed in February as a disconnect between markets and the Fed reintroduced volatility. Learn more in our recent podcast.

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). This 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 for a full copy of the disclaimer.

The views expressed are those of the speakers as of March 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.

Will 2023 Be a Turning Point for Fixed Income Markets?

It’s been a tumultuous two years for fixed income investors — given the market rebound since Q3 2022, are we starting to turn the corner in fixed income markets?

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 for a full copy of the disclaimer.

The views expressed are those of the speakers as of February 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.

The State of Real Estate

Real estate and housing markets have changed drastically in today's post-COVID, rising rate environment. Analyst Josh Barber, CFA, breaks down the health of different segments of these markets in our latest podcast.

As of 30 November 2022, Diamond Hill owned equity shares of Amazon.com Inc. As of 31 October 2022, Diamond Hill owned debt in American Tower Corp. and Amazon.com Inc.

The views expressed are those of Diamond Hill as of December 2022 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.