Portfolio Manager John McClain, CFA, discusses how market instability caused by COVID-19 is impacting our fixed income portfolios and where he’s finding opportunities amid the chaos.

The views expressed are those of Diamond Hill as of February 2020 and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of results, or investment advice.

As of January 31, 2020 Diamond Hill owned Citigroup, Inc. (equity) and United Airlines Holdings, Inc. (equity). As of November 30, 2019 Diamond Hill owned Citigroup, Inc. (debt) and United Airlines Holdings, Inc. (debt).

The ICE BofA U.S. High Yield Index tracks the performance of the U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market. The index data referenced herein is the property of ICE Data Indices, LLC, its affiliates (“ICE Data”) and/or its third party suppliers and has been licensed for use by Diamond Hill Capital Management, Inc. ICE Data and its third party suppliers accept no liability in connection with its use. See diamond-hill.com for a full copy of the disclaimer.

The S&P 500 Index is a market capitalization-weighted index focused on the large-cap segment of the market. The index is comprised of 500 of the top companies in leading industries in the U.S. economy.

These indices do not incur fees and expenses (which would lower the return) and are not available for direct investment.

This material is for informational purposes and is prepared by Diamond Hill Capital Management. The opinions expressed are as of the date of publication and are subject to change. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Reliance upon this information is at the sole discretion of the listener. Investing involves risk including the possible loss of principal.

Has the High Yield Opportunity Already Passed?

Understanding EdgeBy Diamond Hill Capital MgmtMay 29, 2020