Health Care Re-reform
Industry Perspectives: A Monthly Research Analyst Series
By Kyle Schneider, CFA
We have been deliberate in targeting companies whose competitive advantages should persist under any reasonable outcome.
Finding Value in Discontinued Insurance Business
Industry Perspectives: A Monthly Research Analyst Series
By Krishna Mohanraj, CFA
As long-term investors with low turnover in our portfolios, we welcome opportunities to stay invested with companies that can create value across business cycles.
The Long and Short of Retail Investing
Industry Perspectives: A Monthly Research Analyst Series
The nature of retail—fragmented and highly competitive—makes it difficult to increase prices year in and year out.
The debate between active and passive management that has reverberated for years in equity markets is now shifting to fixed income. We believe it is critical for investors to understand the intricacies of passive management in high yield fixed income....
The Diamond Hill Mission Statement calls on us to serve our clients by providing investment strategies that deliver lasting value through a shared commitment to our intrinsic value-based investment philosophy, long-term perspective, disciplined approach, and alignment with our clients’ interests....
Vail Resorts: A Mountain Sized Moat
Industry Perspectives: A Monthly Research Analyst Series
By Aaron Monroe, CFA
The lack of new resorts enhances the value of the established ones, and Vail has accumulated some of the best.
Revisiting Excess Cash in the Technology Sector
Industry Perspectives: A Monthly Research Analyst Series
By Nate Palmer, CFA, CPA
“While there is inherent uncertainty associated with the specific timeframe within which each company may elect to repatriate overseas cash, recognizing the value of cash is likely to prove worthwhile for investors.”
Global Energy: Positioning for the Long Term
Industry Perspectives: A Monthly Research Analyst Series
By Suken Patel, CFA
“Unsurprisingly, many major oil producers continue to plan for a business-as-usual case in demand growth.”
Mechanics and Benefits of Securitization
Fixed Income Insights: An Educational Series
  • Securitization is not a new concept. In its most basic form, securitization dates back to the late 18th century. The first modern residential mortgage-backed security was issued by the Government National Mortgage Association in 1970, fueling a dramatic expansion in the housing market.
  • A securitized deal begins with an agreement between a lender and a borrower as to the amount borrowed, interest rate paid, collateral to secure the loan, and loan maturity. The borrower’s obligation is then sold or pledged to a trust along with a variety of other similar loans, creating the securitized product.
  • Securitized issues are split into tranches, which are categorized into varying degrees of subordination. Each tranche is separate and distinct from the other tranches, and each has a different level of credit protection or risk exposure.
  • The primary benefit of securitization is to reduce funding costs. Through securitization, a company that is rated BB but maintains assets that are very high in quality (AAA or AA) can borrow at significantly lower rates, using the high quality assets as collateral, as opposed to issuing unsecured debt.
CommScope’s Strengthening Competitive Position
Industry Perspectives: A Monthly Research Analyst Series
By Grady Burkett, CFA
“Although CommScope’s financial results vary significantly from year to year, the firm’s steady improvements become clearer when viewed over longer time periods. ”
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