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News

Corporate bond issuance sets global record
September 6, 2019

John McClain, CFA discusses investors’ search for yield and the high yield bond market in Joe Rennison’s Financial Times article, “Corporate bond issuance sets global record.”

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Popeyes Junk Bonds a Sell-Out, Just Like Its Chicken Sandwiches
September 6, 2019

John McClain, CFA discusses investors’ hunt for yield in Sally Bakewell and Gowri Gurumurthy’s Bloomberg article, “Popeyes Junk Bonds a Sell-Out, Just Like Its Chicken Sandwiches.”

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U.S. Junk Bonds With Negative Yields? Yes, Kind of
September 6, 2019

William Zox, CFA discusses how investors are navigating the corporate bond market in Sam Goldfarb’s The Wall Street Journal article, “U.S. Junk Bonds With Negative Yields? Yes, Kind of.”

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'Volatility is back' amid trade war uncertainty
September 3, 2019

John McClain discusses the Fed, uncertainty in the global markets, the Trade War, the potential for recession, and corporate earnings with Alexis Christoforous, Brian Sozzi and Jared Blikre on Yahoo! Finance.

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Zox: focus on preserving capital
August 30, 2019

William Zox, CFA discusses the bond market, how investors should look to preserve capital and stick to the late cycle playbook with Brian Sullivan on CNBC Worldwide Exchange.

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2019 continues to face volatility amid trade war tensions
August 26, 2019

John McClain, CFA discusses how 2019 could continue to face volatility amid trade war tensions with Brian Sozzi on Yahoo! Finance.

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Meet Me in the Middle
August 23, 2019

William Zox, CFA encourages investors to focus on not losing money, if stocks and Treasuries do meet somewhere in the middle in WealthManagement.com’s 2019 Mid-Year Outlook, “Meet Me in the Middle.”

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Recession probability in the next 12 to 18 months is elevated: analyst
August 15, 2019

William Zox, CFA discusses the Fed’s impact on the yield curve inversion and the elevated probability of a U.S. recession with Julie Hyman, Adam Shapiro, Tendayi Kapfidze and Ramsey Smith on Yahoo! Finance.

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Why these market experts say a recession may not happen, but it’s hard to bring momentum into the market and be positive on stocks right now
August 15, 2019

William Zox, CFA discusses the fixed income markets, the divergence between government bond markets and risk assets, and the risk of recession with Dominic Chu on CNBC.

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Credit Traders Rush to Hedge as Trade War Whips Bond Market
August 5, 2019

John McClain recommends investors look to high quality businesses and defensive bonds as the Trade War rattles the markets in Caleb Mutua, Katrina Lewis and Claire Boston’s Bloomberg article, “Credit Traders Rush to Hedge as Trade War Whips Bond Market.”

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John McClain on What the U.S./China Trade War Means For The Fed
August 5, 2019

John McClain, CFA discusses volatility in the markets and the implications of the Trade War on the Fed with Oliver Renick on TD Ameritrade Network.

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Here Are the Fed’s 4 Options for a Rate Cut—and How the Market Will React to Each
July 29, 2019

William Zox, CFA discusses this week’s Fed decision and its impact on markets with Larry Light in Fortune, “Here Are the Fed’s Four Options for a Rate Cut-and How the Market Will React to Each.”

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Junk bond issuers snap up chance to stretch out borrowing
July 25, 2019

John McClain, CFA discusses the dangers high yield investors face when companies issue longer-term debt and lower borrowing costs in Joe Rennison’s Financial Times article, “Junk bond issuers snap up chance to stretch out borrowing.”

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All eyes on the Fed and the rate cut decision
July 19, 2019

John McClain, CFA discusses the Fed’s potential rate cut decision and its impact on the markets, and the Trade War with Dan Roberts, Kristin Meyers and Heidi Chung on Yahoo Finance.

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Bill Zox Covers Expectation For Earnings Season Show Info Captions Share Quality
July 17, 2019

William Zox, CFA discusses his outlook for bonds as the Fed eyes a rate cut, and expectations for earnings and credit spreads with Oliver Renick on TD Ameritrade Network.

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John McClain on Yahoo Finance
July 1, 2019

John McClain, CFA discusses the Fed’s decision to cut rates and outlines the market’s expectations on Yahoo Finance.

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Investors Pump Cash Into Junk Bond Funds as Issuance Spikes
June 27, 2019

William Zox, CFA discusses the impact of the Fed’s rate decision and investor sentiment in the high yield space in Bloomberg’s article, “Investors Pump Cash Into Junk Bond Funds as Issuance Spikes”.

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Bloomberg Markets: The Open
June 26, 2019

William Zox, CFA discusses the impact of the US-China trade deal on the high yield bond market and the Fed’s next move with Lisa Abramowicz on Bloomberg TV’s The Open.

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'There are no obvious opportunities'
June 26, 2019

William Zox, CFA discusses why it’s time for investors to focus on preserving existing gains, as opposed to making money outright in Carmen Reinicke’s Business Insider article.

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What's the probability of a recession?
June 26, 2019

William Zox, CFA discusses a potential recession, positioning your portfolio defensively, the Fed, and the probability of a rate cut with Adam Shapiro and Julie Hyman on Yahoo Finance.

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Little Upside Left in US Junk Bonds: Diamond Hill’s Zox
June 26, 2019

William Zox, CFA discusses the high yield bond market and his outlook for fixed income with Lisa Abramowicz and Paul Sweeney of Bloomberg Radio.

Listen to Bill’s interview

US 'junk' groups rush to sell bonds as borrowing costs fall
June 24, 2019

John McClain, CFA discusses issuance and risk in the high yield bond market in Joe Rennison’s Financial Times article “US ‘junk’ groups rush to sell bonds as borrowing costs fall.”

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Stocks Just Hit a Record, Thanks to the Fed
June 20, 2019

William Zox, CFA discusses the impact of the Fed’s decision on stock markets in Matt Phillips’ The New York Times article, “Stocks Just Hit a Record, Thanks to the Fed.”

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What the Fed's Latest Move Means for Investors
June 19, 2019

William Zox, CFA discusses the latest Fed decision, the probability of a recession, and preparing for volatility in the Barron’s article, “What the Fed’s Latest Move Means for Investors.”

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Attack of the Killer BBBs! Big Downgrade Damage Ahead? Maybe Not
June 11, 2019

John McClain, CFA discusses the proliferation of BBB-rated bonds in Lawrence Light’s Chief Investment Officer Magazine article, “Attack of the Killer BBBs! Big Downgrade Damage Ahead? Maybe Not.”

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Funds survey the wreckage of a debt-fueled energy bust
May 17, 2019

John McClain, CFA discusses debt in the energy sector in Joe Rennison’s Financial Times article “Funds survey the wreckage of a debt-fueled energy bust.”

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Fed pivot buoys high-yield strategies
May 13, 2019

The Diamond Hill High Yield Fund ranked best performing high yield fund and third best overall U.S. fixed income fund over the one-year period in James Comtois’ Pensions & Investments newspaper article “Fed pivot buoys high-yield strategies.”

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John McClain Discusses Rising Credit Risk
May 1, 2019

John McClain, CFA discusses the upcoming Fed decision, improving credit quality within your portfolio in the current market environment, and the high yield sector with Oliver Renick on TD Ameritrade.

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Cause for Worry: Stock and Bond Prices Walk Hand in Hand
April 16, 2019

William Zox, CFA discusses the current correlation between stocks and bonds in Lawrence Light’s Chief Investment Officer article, “Cause for Worry: Stock and Bond Prices Walk Hand in Hand.”

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Another 48 Hours: Investors Question Possible Credit Trading Fix
April 17, 2019

William Zox, CFA discusses the impact of FINRA’s new regulatory proposal on liquidity and transparency in the corporate bond market in Molly Smith, Claire Boston and Natalya Doris’ Bloomberg article, “Another 48 Hours: Investors Question Possible Credit Trading Fix.”

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Cause for Worry: Stock and Bond Prices Walk Hand in Hand
April 16, 2019

William Zox, CFA discusses the current correlation between stocks and bonds in Lawrence Light’s Chief Investment Officer article, “Cause for Worry: Stock and Bond Prices Walk Hand in Hand.”

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Sycamore Pockets $1 Billion From Deal That Amazed Wall Street
April 11, 2019

John McClain, CFA discusses Sycamore Partners’ refinancing of Staples in Eliza Ronalds-Hannon and Davide Scigliuzzo’s Bloomberg article, “Sycamore Pockets $1 Billion From Deal That Amazed Wall Street.”

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In High-Yield Bonds, Look Closer at Active Management
April 4, 2019

John McClain, CFA makes the case for actively managed strategies in high yield bonds in his ThinkAdvisor piece. According to John, portfolio decisions should come down to a fundamental understanding of what you own and why you own it.

Read John’s full article

Bill Zox on How the Fed Is Impacting Markets
April 3, 2019

William Zox, CFA discusses the Fed and data dependency, the yield curve, volatility, and opportunities in BBB bonds with Oliver Renick on TD Ameritrade Network’s ‘Morning Trade Live’ segment.

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Once Hated, Now Loved: BBB Corporate Debt Is Back in Vogue
March 29, 2019

John McClain, CFA discusses opportunities in BBB bonds and interest rates in Molly Smith and Natalya Doris’ Bloomberg article, “Once Hated, Now Loved: BBB Corporate Debt Is Back in Vogue.”

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Diamond Hill Sees Value In BBB Bonds Over BB
March 22, 2019

William Zox, CFA discusses opportunities within the high yield market and the Fed on Bloomberg Radio.

Listen to Bill’s interview

Benchmark Treasury yield hits year-low after Fed move
March 21, 2019

William Zox, CFA discusses the effect from the Fed announcement on financial markets and the potential return of volatility in Joe Rennison’s Financial Times article.

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Fed forecasts no more rate hikes in 2019
March 21, 2019

William Zox, CFA discusses the Fed announcement and its implications on markets, along with his concerns about risk assets on Yahoo Finance.

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Fed Paying Someone to Take The SAT For The Market
March 20, 2019

William Zox, CFA gives his thoughts on the Fed meeting, and what’s in store for fixed income markets and risk assets on Bloomberg Radio, “Fed Paying Someone to Take The SAT For The Market.”

Listen to Bill’s interview

Diamond Hill Demonstrates Fixed Income Edge
March 18, 2019

We are proud to announce that our High Yield Fund (DHHIX) received a 5-star rating from Morningstar, and that our Corporate Credit Fund (DSIYX) was awarded the 2019 Lipper Fund Award from Refinitiv for best U.S. high yield fund over 5 years.

Read more: Diamond Hill Demonstrates Fixed Income Edge

Standing Out By Not Fitting In
March 18, 2019

Citywire’s article, “Standing Out By Not Fitting In,” explains why we believe our high yield strategies have added value compared to peers, benchmarks and investable passive alternatives over the last five years.

Read the article:
Standing Out By Not Fitting In.”

John McClain Compares High Yield vs Stocks Rally
March 7, 2019

John McClain, CFA discusses high yield’s strong start in 2019, the Fed and ECB, and taking on more interest rate risk than credit risk right now with Oliver Renick on TD Ameritrade Network’s ‘Market on the Close’ segment.

Watch John’s interview

Gathering Threats Stir Doubts About Auto Sector
March 5, 2019

John McClain, CFA discusses the benefits of owning U.S. automakers’ debt in Sam Goldfarb’s The Wall Street Journal article, “Gathering Threats Stir Doubts About Auto Sector.”

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Corporate credit bonds, the Fed, and positioning your portfolio for the return of volatility
February 27, 2019

William Zox discusses corporate credit bonds, the Fed, and positioning your portfolio for the return of volatility with Oliver Renick on TD Ameritrade Network’s ‘Market on the Close’ segment.

Watch Bill’s interview

Altria’s $11.5bn bond sale meets strong investor demand
February 13, 2019

John McClain, CFA discussed the Fed’s impact on the bond markets in Joe Rennison and Eric Platt’s Financial Times article, “Altria’s $11.5bn bond sale meets strong investor demand.”

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Corporate Bonds Are on Fire After the Fed’s Dovish Signal
February 8, 2019

William Zox, CFA discusses a market environment’s impact on bonds in Molly Smith, Rebecca Choong Wilkins and Janine Wolf’s Bloomberg article, “Corporate Bonds Are on Fire After the Fed’s Dovish Signal.”

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Dun & Bradstreet leveraged loan met with lackluster demand
February 7, 2019

John McClain, CFA discusses the sentiment in the bond and loan markets in Joe Rennison, Colby Smith, and Eric Platt’s Financial Times article, “Dun & Bradstreet leveraged loan met with lackluster demand.”

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U.S. junk bonds are back, for now
February 4, 2019

John McClain, CFA discusses how junk bonds will become a more attractive buying opportunity despite recent rebounds in Kate Duguid’s Reuters article, “U.S. junk bonds are back, for now.”

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As of 6/30/19 there were 2 gold rated, 9 silver rated, 14 bronze rated, 26 neutral rated, 1 negative rated and 191 not rated funds in the U.S. High Yield Bond category.

The Morningstar Analyst Rating™ is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark, or in the case of exchange-traded funds and index mutual funds, a relevant peer group, over the long term on a risk-adjusted basis. They consider quantitative and qualitative factors in their research, and the weight of each pillar may vary. 

The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. A Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s conviction in a fund’s prospects for outperformance. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to global.morningstar.com/managerdisclosures/.

The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause Analyst expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.

The Overall Morningstar Rating™ is based on 610 high yield bond funds as of 7/31/19. The Fund’s Class I rating was 5 stars among 610, 5 stars among 524, and 4 stars among 337 high yield bond funds for the 3-, 5-, and 10-year periods ended 7/31/19, respectively.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The Morningstar Broad Fee Level data point compares the fund's net expense ratio to the net expense ratio of all the other funds within its Morningstar Category.

© 2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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