Explore insights from portfolio manager Arthur Cheng, CFA, on high-yield markets and their role in the Core Plus strategy. He also discusses what risks investors should be watching for and where opportunities might arise in today’s dynamic environment.

DISCLOSURES

The performance data quoted represents past performance and is not indicative of future results.

The discussion of specific portfolio holding(s) performance is provided gross of fees and should be viewed in conjunction with the net of fee returns provided for the entire strategy.

Performance for the strategies are available here: Core Bond and Core Plus. Securities referenced may not be representative of all portfolio holdings. Listeners should not assume that an investment in the securities was or will be profitable.

Credit ratings are an estimate of the level of risk involved in lending money to a business or other entity. Bonds receive credit ratings before they are issued. While each rating agency uses a slightly different scale, they assign ratings as letter grades. In general, a rating of AAA is the highest possible credit rating, while a C or D rating is the lowest.

Investment Grade is a Bond Quality Rating of AAA, AA, A or BBB. 

As of 31 March 2025, Diamond Hill owned shares of Bank OZK.

As of 28 February 2025, Diamond Hill owned debt of Bank OZK, Brundage-Bone Concrete Pumping, Adient Global Holdings, Bread Financial Holdings.

As of 31 January 2025, Diamond Hill owned shares of Concrete Pumping Holdings Inc.

Bloomberg US Corporate High Yield Index measures the USD-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody’s, Fitch and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on the indices’ EM country definition, are excluded.

The views expressed are those of the speakers as of April 2025 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.