John Calamos learned about convertible bonds while studying investment books in his downtime as a B-52 pilot on alert in 1970.
The 1970s was an extremely volatile era for the financial markets. Rapidly ascending energy prices, inflation, economic slowdown, high unemployment and soaring government debt together fueled market turmoil and investor anxiety. After the Air Force, while working as a stockbroker, John used convertible bond strategies to preserve capital during market downturns and make money during short-lived upturns.
John went on to found Calamos Investments and established himself as a recognized authority on risk-managed investment strategies. But both his military and his early investing experience shaped his views on risk and continue to influence the investment culture of Calamos Investments today.
When John flew fighters, his goal was not to avoid risk but to understand and control it.
How do you control risk as a pilot? “By knowing as much as possible about your airplane, especially the emergency procedures,” John says. “If a fire breaks out, you don’t have time to get the manual out and study what to do. You’ve got to know what to do—which means preparing before the event. That’s risk management.”
“Your risk management needs to be in place before the event, not after,” John says.
Return to the Volatility Guide
The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.
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