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How Convertibles Have Rebounded After Steep Declines

Primarily reflecting macro concerns centered on rising rates and inflation, the stocks underlying convertible securities have taken a beating since November. As shown below in this data from Bank of America, more than nine out of 10 stocks in the ICE BofA All US Convertibles Index (VXA0) have declined more than 20% from November 9, 2021, through May 12 of this year. In fact, about two-thirds were at least 50% below their all-time high, according to BofA.

Convertible issuers have experienced similarly steep declines previously, including most recently during the 2020 Covid drawdown. History shows that converts' rebounds six and 12 months later have been in double-digits.

after steep declines convertibles have posted solid returns

Investment professionals, for more information about opportunities we’re seeing in the convertible market, contact your Calamos Investment Consultant at 888-571-2567 or

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.

The ICE BofA All US Convertibles Index (VXA0) comprises approximately 700 issues of only convertible bonds and preferreds of all qualities. Source ICE Data Indices, LLC, used with permission. ICE permits use of the ICE BofA indices and related data on an ‘as is’ basis, makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of the ICE BofA Indices or data included in, related to, or derived therefrom, assumes no liability in connection with the use of the foregoing and does not sponsor, endorse or recommend Calamos Advisors LLC or any of its products or services.

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