Bloomberg TV"Bloomberg News" May 11, 2009
John P. Calamos, Sr. expressed a favorable but selective view on opportunities in the convertible, equity and high yield markets. He said he believes, "it's very much a bottom-up market. You need to do homework on individual positions."
He commented on the resilience demonstrated by convertibles in the 2008 downturn relative to equities and noted that institutional investors are looking to capitalize on the tremendous convertible valuation gap that appeared in 2008 by using convertibles as part of a defensive equity strategy.
John said he was also encouraged by improving conditions in the credit markets, including an upswing in convertible issuance. Nonetheless, he noted that he believes the markets could trade sideways for a number of years instead of staging a "V" shaped recovery. In his view, such a sideways market would be best navigated through individual stock selection rather than index strategies.
Video: © 2009 Bloomberg L.P. All rights reserved. Used with permission.
Before investing, carefully consider the fund's investment objectives, risks, charges and expenses. Please see the prospectus containing this and other information or call 800-582-6959. Read it carefully.
Information about Risk—Calamos Convertible Fund: In addition to market risk, there are certain other risks associated with an investment in a convertible bond, such as default risk, the risk that the company issuing debt securities will be unable to repay principal and interest, and interest rate risk, the risk that the security may decrease in value if interest rates increase.
You should also know that the Fund may invest up to 25% of its assets in the securities of foreign issuers. As a result of political or economic instability in foreign countries, there can be special risks associated with investing in foreign securities, including fluctuations in currency exchange rates, increased price volatility, and difficulty obtaining information.
Top 10 Holdings—Calamos Convertible Fund: As of March 31, 2009, the top 10 holdings of Calamos Convertible Fund are as follows: EMC Corp., 4.7%; Schering-Plough Corp., 2.9%; Sybase, Inc., 2.9%; Mylan, Inc., 2.8%; Symantec Corp., 2.7%; Network Appliance, Inc., 2.4%; Archer Daniels Midland Company, 2.3%; Newmont Mining Corp, 2.1%; Teva Pharmaceutical Industries, Ltd., 1.9%; Freeport-McMoRan Copper & Gold, Inc., 1.9%.
The information in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account's portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed do not represent the account's entire portfolio and in the aggregate may represent only a small percentage of an account's portfolio holdings.
It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable, or that the investment recommendations we make in the future will be profitable or will equal the investment performance of the securities discussed herein.
The portfolio is actively managed. Holdings and sector weightings are subject to change daily and are provided for informational purposes only. Fund composition weightings are based on net assets. Sector weightings do not include the government bond portion of synthetic convertibles.
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 should not be considered investment advice.
Calamos Financial Services, LLC is the distributor for the Calamos Convertible Fund
Calamos Closed-End Fund Risks—Calamos Convertible Opportunities and Income Fund (CHI), Calamos Strategic Total Return Fund (CSQ) and Calamos Convertible and High Income Fund (CHY): Investments by the Funds in lower-rated securities involve substantial risk of loss and present greater risks than investments in higher rated securities, including less liquidity and increased price sensitivity to changing interest rates and to a deteriorating economic environment. Fixed-income securities are subject to interest-rate risk; as interest rates go up, the value of debt securities in the Funds' portfolios generally will decline. There are certain risks associated with an investment in a convertible bond such as default risk—that the company issuing a convertible security may be unable to repay principal and interest—and interest rate risk—that the convertible may decrease in value if interest rates increase.
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