Today we’re introducing a new monthly publication: the U.S. Convertible Market Snapshot as a financial advisor guide to the state of the convertible market.
With data through March 31, the premier issue provides insights on market performance, issuance, assets, composition, credit quality and valuations.
“Despite outsized returns in the equity alternative portion of the market during 1Q19, we believe that balanced converts offer the most attractive opportunity given their combination of upside potential and downside protection,” says Joseph Wysocki, CFA, Senior Vice President, Co-Portfolio Manager of Calamos Convertible Fund (CICVX), in the Snapshot’s overview.
There’s a strong case to be made for the role actively managed convertible securities can play in a portfolio. As was seen in 2018 (see post), convertibles can help stabilize a portfolio and reduce the investor’s temptation to time the market.
Calamos Founder, Chairman and Global CIO John Calamos is widely credited with pioneering the use of convertibles in risk management more than 40 years ago, and the firm has since developed a breadth of strategies that capitalize on the opportunity of convertibles.
You’ll find subsequent issues of the U.S. Convertible Market Snapshot on our convertibles resources page.
Advisors, for more information about our convertible-using funds, please contact your Calamos Investment Consultant at 888-571-2567 or email firstname.lastname@example.org.
Before investing carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-800-582-6959. Read it carefully before investing.
Important Risk Information. An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
The principal risks of investing in the Calamos Convertible Fund include: convertible securities risk consisting of the potential for a decline in value during periods of rising interest rates and the risk of the borrower to miss payments, synthetic convertible instruments risk consisting of fluctuations inconsistent with a convertible security and the risk of components expiring worthless, foreign securities risk, equity securities risk, interest rate risk, credit risk, high yield risk, portfolio selection risk and liquidity risk. 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. In addition, emerging markets may present additional risk due to potential for greater economic and political instability in less developed countries.