Understanding Edge

Micah Martin, CFA, recaps his trip to Australia, diving into the country, its economy and the investible opportunity set.

As of 31 January 2025, Diamond Hill’s International Strategy owned shares of Whitehaven Coal Limited.

MSCI ACWI ex USA Index measures the performance of large- and mid-cap stocks in developed (excluding the US) and emerging markets. The index is unmanaged, market capitalization weighted, 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: MSCI, Inc. See diamond-hill.com/disclosures for a full copy of the disclaimer. 

The views expressed are those of the speaker as of 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 a guarantee of future results.

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 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 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 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)

From biotech's rebound to the next frontier for GLP-1 drugmakers, Chendhore Veerappan, PhD, CFA, our health care research analyst, delves into the trends and investment opportunities unfolding in this dynamic sector. Tune in to our latest podcast!

As of 30 April 2024, Diamond Hill owned shares of Abbott Laboratories and Roche Holdings AG.

SPDR® S&P® Biotech ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® Biotechnology Select IndustryTM Index.

The views expressed are those of Diamond Hill as of May 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, we discuss the Fed's recent meeting and the latest outlook on inflation and rates. We also explore the recent performance of various sectors within the fixed income market.

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

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 Corporate Index measures the performance of the US investment grade fixed-rate taxable corporate bond market. Bloomberg US Securitized Index measures the performance of the securitized sector of the Bloomberg US Aggregate Bond Index. Bloomberg US Mortgage-Backed Securities Index measures the performance of fixed-rate agency mortgage-backed pass-through securities guaranteed by Ginnie Mae (GNMA), Fannie Mae (FNMA), and Freddie Mac (FHLMC). Bloomberg US ABS Index measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. Bloomberg US Non-Agency CMBS Index measures the market of US non-agency conduit and fusion CMBS deals with a minimum current deal size of $300 million. 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 a full copy of the disclaimer. 

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

Our director of research, Win Murray, discusses identifying investment talent, how a research team should operate, what makes a great analyst and more. (78 min podcast)

Diamond Hill’s total assets were $30.3 billion as of 29 February 2024

For Important information on Diamond Hill Funds, click here.

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

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

Senior Portfolio Specialist Douglas Gimple shares his insights on the fixed income markets. Tune in to hear about the latest from the Fed, market expectations, CMBS, and more.

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

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 Corporate Index measures the performance of the US investment grade fixed-rate taxable corporate bond market. Bloomberg Non-Agency US CMBS Investment Grade Index measures the market of US Non-Agency conduit and fusion CMBS deals with a minimum current deal size of $300mn. 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 a full copy of the disclaimer.

MOVE Index, or Merrill Lynch Option Volatility Estimate Index, measures interest rate volatility in the US Treasury market. It is calculated from options prices, which reflect the collective expectations of market participants about future volatility.

Yield to Worst is the lowest potential bond yield received without the issuer defaulting, it assumes the worst-case scenario, or earliest redemption possible under terms of the bond.  

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