Convertible securities are complex. We should know, we literally wrote the book on them!
Convertible investing is in our DNA. More than 40 years ago, Calamos Founder, Chairman and Global Chief Investment Officer John P. Calamos, Sr., pioneered strategies utilizing convertibles.
At Calamos, we know that with skillful management, the unique properties that convertible securities offer can be tailored to serve a wide range of portfolio objectives. We offer dedicated US and global convertible strategies, as well as convertible exposure in many other strategies.
Announcing the Calamos Convertible Equity Alternative ETF (Ticker: CVRT)
The market's first convertibles ETF that provides targeted exposure to the equity-sensitive segment of the US Convertibles market. Brought to you by the largest manager of convertibles securities in the US1, CVRT incorporates a rules-based approach with an active edge, seeking to capitalize on investment opportunities along the way.
Recent Convertibles Insights
Looking forward, we are cautiously optimistic but see multiple positives and negatives pushing and pulling the market. Our overall focus remains on bottom-up company selection and actively managing risk/reward tradeoffs. We also favor innovative companies positioned to benefit from enduring secular themes.
The combination of oil prices, Fed policy, and political uncertainty all make for a questionable growth outlook in 2024. Nonetheless, we will stick to our fundamental process and work to maintain the best risk/reward profile possible. And we expect a convertible issuance boost in 2024 as companies seek to refinance maturing debt.
Convertible Bonds Have Been Consistent Top Performers
Source: Bloomberg and Morningstar. Past performance is no guarantee of future returns.
- Convertible bonds are represented by the ICE BofA All US Convertibles Index (VXA0), a gauge of the performance of the US convertible market.
- US aggregate bonds are represented by the Bloomberg US Aggregate Bond Index, covers the US-denominated, investment grade, fixed rate, taxable bond market of SEC-registered securities.
- High yield bonds are represented by the Credit Suisse US High Yield Index, an unmanaged index of high yield debt securities.
- US government bonds are represented by the Bloomberg US Government Index, an unmanaged index considered representative of fixed income obligations issued by the US Treasury, government agencies and quasi-federal corporations.
- Treasury bills are represented by the Bloomberg US Treasury Bill 1-3 Month Index, is a component of the Short Treasury Index and includes aged US Treasury bills, notes and bonds with a remaining maturity from 1 up to (but not including) 12 months.
- US investment grade bonds are represented by the Bloomberg US Corporate Investment Grade Index, consists of publicly issued, fixed rate, nonconvertible, investment grade debt securities.
- Global asset-backed securities are represented by the Bloomberg Global Asset Backed Index, a fixed income index that focuses on asset-backed securities and includes pass-through, controlled-amortization and bullet-structured securities, which have a minimum average life of one year.
- Government bonds ex. US are represented by the ICE BofA Global Government Bond Index, excluding US, tracks the performance of investment grade sovereign debt publicly issued and denominated in the issuer's own domestic market and currency.
- Preferreds are represented by the ICE BofA Fixed Rate Preferred Securities Index, comprised of investment grade fixed rate US dollar denominated preferred securities issued in the US domestic market.
John P. Calamos, Sr. has authored two books, Investing in Convertible Securities: Your Complete Guide to the Risks and Rewards and Convertible Securities: The Latest Instruments, Portfolio Strategies, and Valuation Analysis.