Preferred Securities: Dominated by Financials Seeking to Support Bond Ratings

November 8, 2019

Along with high yield bonds and convertible securities, preferred securities are a third segment of the hybrid bond market. Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, points out the how companies have used preferred securities to support the senior portion of their capital structure.

Transcript

Video recorded 10/17/19.

Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. The views and strategies described may not be suitable for all investors. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations.

Fixed income securities entail interest rate risk. High yield securities are also subject to increased credit risk and liquidity risk.

©2019 Calamos Investments LLC. All Rights Reserved. Calamos® and Calamos Investments® are registered trademarks of Calamos Investments LLC.

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Media Appearances

Are We Nearing A Regime Change?

November 8, 2019

Michael Grant, Co-CIO, Senior Co-Portfolio Manager of Calamos Phineus Long/Short Equity Fund (CPLIX), outlines why the next decade may see a dramatically different investment regime, bringing the potential for higher interest rates and a shift toward value-style stocks.

Regime Change Will Reflect Regional Economic Blocs, Demographic Differences

November 8, 2019

Investors will have to rethink their global investment approach, according to Michael Grant, Co-CIO, Senior Co-Portfolio Manager of Calamos Phineus Long/Short Equity Fund (CPLIX). In this video, he explains how a “new digital Cold War” could reshape the landscape.

How Will the Debt Bubble Be Resolved?

November 8, 2019

In this video, Michael Grant, Co-CIO, Senior Co-Portfolio Manager of Calamos Phineus Long/Short Equity Fund (CPLIX), comments on debt resolution in the 2020s and discusses four possible ways of resolving the global debt bubble.

It's the End of One-Way Markets

November 8, 2019

Michael Grant, Co-CIO, Senior Co-Portfolio Manager of Calamos Phineus Long/Short Equity Fund (CPLIX), believes investors need to come to terms with the exhaustion of monetary policy and the end of what he calls central bank supremacy. What’s ahead, according to Grant, is more cyclicality and volatility.

The Search for Income May Lead to Equities, Not Bonds

November 8, 2019

Arguing that investors will need a more active, selective and risk-adjusted approach across asset classes in the next decade, Michael Grant, Co-CIO, Senior Co-Portfolio Manager of Calamos Phineus Long/Short Equity Fund (CPLIX), suggests that investors seeking income in equities could outperform bonds in both upside and downside scenarios over the next 10 years.

3 Common Mistakes Made by Investors Today

November 8, 2019

Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, elaborates on three common mistakes being made by investors in today’s markets—resulting in poor timing, taking on too much risk and missed opportunities.

The Concern about Negative Rates

November 8, 2019

Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, explores the relatively new phenomenon of negative interest rates, describing their implications for investors and the challenges they pose in terms of financial planning.

The Fed's Interest Rate Dilemma

November 8, 2019

In this video, Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, describes the Federal Reserve’s role in the “tug of war” between industries and geographic regions that would benefit from lower interest rates and those that wouldn’t.

When the Yield Curve Inverts

November 8, 2019

An inverted yield curve is often a sign of building economic pressure, according to Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager. Here, he spells out what that could mean for investors and the economy.

Options for Reducing Federal, State and Corporate Debt

November 8, 2019

While the federal deficit has climbed above $1 trillion, many states are operating at a deficit and corporate borrowing has increased. Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, comments on three options for reducing debt—and the challenges of government and corporate belt-tightening.

Modern Monetary Theory (MMT) Explained

November 8, 2019

Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, outlines some of the pros and cons of Modern Monetary Theory—and why it might be a potential funding option for proposed economic initiatives in the U.S.

A Market of Bonds

November 8, 2019

In the words of Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, there’s no such thing as the bond market. Instead, it’s “a market of bonds” that vary based on their defining characteristics—including quality, duration, income, prepayment terms and more—and each will behave differently.

The Case for High Yield Today

November 8, 2019

Matt Freund, CFA, Co-CIO, Head of Fixed Income Strategies and Senior Co-Portfolio Manager, explains the hybrid nature of high yield bonds, whose returns generally fall in between the returns of equities and high-quality bonds, and his assertion that investors are being “well paid” for taking on the risk inherent to the high yield bond market.

The #1 Lesson About Investing in Small Caps

September 24, 2019

Brandon M. Nelson, CFA, Senior Portfolio Manager of the Calamos Timpani Small Cap Growth Fund (CTSIX), reminds investors that not all great companies turn out to be great stocks as well.

One Small Cap Story: Vericel

September 24, 2019

Gain insight into the process followed by Brandon M. Nelson, CFA, Senior Portfolio Manager, as he leads the management team for the Calamos Timpani Small Cap Growth Fund (CTSIX).

The Goal: Fundamental Momentum

September 24, 2019

In this Q&A video, Brandon M. Nelson, CFA, Senior Portfolio Manager of the Calamos Timpani Small Cap Growth Fund (CTSIX), describes the core components of fundamental momentum: sustainable growth and underestimated growth.

A No-Nonsense Sell Discipline

September 24, 2019

Watch as Brandon M. Nelson, CFA, Senior Portfolio Manager of the Calamos Timpani Small Cap Growth Fund (CTSIX), explains why he sees his team’s sell discipline as a competitive advantage.

Small Caps Today: A Favorable Entry Point

September 24, 2019

Watch this Q&A video on how Brandon Nelson, Calamos Senior Portfolio Manager of Calamos Timpani Small Cap Growth Fund (CTSIX), assesses today’s market for small cap opportunities.

Small Cap Stocks Offer the 'Most Exploitable' Opportunities

May 31, 2019

Brandon Nelson, Senior Vice President, Senior Portfolio Manager of the Calamos Timpani Small Cap Growth Fund (CTSIX), discusses the potential for disproportionate rewards when investing in small cap stocks.

Today's Opportunity: Buy Ideas Outnumber Sell Ideas

May 31, 2019

Brandon Nelson, Senior Vice President, Senior Portfolio Manager of the Calamos Timpani Small Cap Growth Fund (CTSIX), talks about the opportunities he and his team are seeing in the small cap space.

Active Management Reacts to Changing Risk Profile

April 16, 2019

In a strong equity market, some convertibles can have a high degree of participation, but can also leave clients exposed to downside risk. Joe Wysocki, CFA, Senior Vice President, Co-Portfolio Manager, explains how active management helps “create a portfolio that has the optimal risk/reward throughout the full market cycles.”

Convertibles Have Provided Equity-Like Returns, Less Volatility

April 16, 2019

Joe Wysocki, CFA, Senior Vice President, Co-Portfolio Manager, points out that convertibles have historically produced positive total returns during rising rate environments that traditional fixed income has struggled with.

Tapping Tech's Growth Potential While Limiting Downside Risk

April 16, 2019

Joe Wysocki, CFA, Senior Vice President, Co-Portfolio Manager, observes that technology companies are typically growth companies, often with healthy valuations. An investor in a tech company’s convertible expects to participate in the upside when anticipated growth materializes, while seeking to avoid much of the downside if it does not.

Unrated and Lower-Rated Converts Can Still Offer Value

April 16, 2019

A convertible issuer’s below-investment grade rating—or no rating at all—is not the negative signal that an uninformed investor might expect, explains Joe Wysocki, CFA, Senior Vice President, Co-Portfolio Manager.

Convertible Issuance Suited to Growth Companies

April 16, 2019

Joe Wysocki, CFA, Senior Vice President, Co-Portfolio Manager, looks at why convertibles often make sense for smaller, mid-cap companies with an established growth niche and for larger growth companies seeking capital for future growth.

Balanced Convertibles Can Offer Asymmetric Risk/Reward

April 16, 2019

Joe Wysocki, CFA, Senior Vice President, Co-Portfolio Manager, provides an overview of the convertibles market, noting “opportunities to give us the asymmetric risk/reward profile that we think is the sweet spot of convertible investing.”

Slow and Steady Can Win the Race in 2019

April 12, 2019

Acknowledging the economy’s mixed signals, Scott Becker, Senior Vice President, Head of Portfolio Specialists, offers analysis of potential market opportunities as 2019 unfolds.

Blending a Core Portfolio with Actively Managed Options

April 11, 2019

Joe Cusick, Vice President, Portfolio Specialist, comments on two essential traits that make CIHEX stand out from its peers and explains its goal of selling expensive volatility and buying cheap volatility.

Explore Options for Broader Diversification

April 11, 2019

Traditional portfolios don’t always provide adequate diversification, particularly during market shocks, says Joe Cusick, Vice President, Portfolio Specialist. Options-based funds offer an alternative.

A Strategic Trade That Defines Risk and Reward

April 11, 2019

Joe Cusick, Vice President, Portfolio Specialist, defines the “North Star trade” and its role in seeking to take advantage of the market’s natural drift to the upside while protecting against market shocks.

The Power of a Dynamic Approach

April 11, 2019

Joe Cusick, Vice President, Portfolio Specialist, favors CIHEX’s dynamic approach, pointing out that fund managers with a set it/forget it methodology could miss out on new opportunities as they arise.

An Equity-Like Alternative Seeking Lower Volatility

April 11, 2019

Where does it fit in a client’s portfolio? According to Joe Cusick, Vice President, Portfolio Specialist, CIHEX aims for less volatility, shallow drawdowns and quicker rebounds after equity market pullbacks.

Japan Leads in Robotics and Automation

May 17, 2018

Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager, sees Japan as a standout in various technology and industrial sectors.

Starting with a Broader Opportunity Set

May 17, 2018

Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager, starts with more than 11,000 companies that are screened using proprietary valuation and quantitative tools to identify and rank opportunities.

A Non-Consensus Overweight in China

May 17, 2018

Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager, explores opportunities to take advantage of secular tailwinds that could help drive growth of innovative companies in China.

The Retail Space Offers Both Growth and Value

May 17, 2018

“Valuation metrics do not incorporate things that are very important to us, like competitive moats [and the] disruption that’s happening in industries,” says Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager.

Risk, Volatility--and Opportunity with China, the Second Superpower

May 17, 2018

Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager, says the U.S. will “find some wins” and that China is “willing to provide those wins” in terms of trade negotiations.

Active Management to Construct a Better Hedge

May 1, 2018

Dave O’Donohue, Senior Vice President, Co-Portfolio Manager, points out how a more active, more flexible management approach helps set Calamos apart.

Defensive Equity vs. Fixed Income Alternative

May 1, 2018

Dave O’Donohue, Senior Vice President, Co-Portfolio Manager, explains how the two hedging strategies have different risk profiles and return expectations.

Convertible Bonds Offer An Asymmetric Return Profile

May 1, 2018

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-Portfolio Manager, points out the potential of convertible bonds to “generate returns similar or better than the equity market with substantially less volatility.”

Convertibles: For An Equity or Bond Allocation

May 1, 2018

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-Portfolio Manager, explains how convertible securities can be used as part of a core equity allocation or as a fixed income alternative.

Why We Like Unrated Convertibles

May 1, 2018

“We often like those credits,” says Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-Portfolio Manager, noting their position in the capital structure and their significant presence within the convertibles market.

Pursuing 2 Strategies to Generate Alpha

May 1, 2018

Jason Hill, Senior Vice President, Co-Portfolio Manager, characterizes the strategy as having two primary components, an option-hedge portion and an S&P replication basket.

Our “North Star” Trade

May 1, 2018

Jason Hill, Senior Vice President, Co-Portfolio Manager, describes how this model trade serves as “a compass.”

Going Beyond the Benchmark Helps Discover Opportunities Early

May 1, 2018

Along with his team, Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager, looks for companies that are benefiting from secular tailwinds, regardless of market cap.

3 Tailwinds

January 19, 2018

Nick Niziolek, Co-CIO, Head of International and Global Strategies and Sr. Co-PM, describes the three tailwinds—the weak U.S. dollar, global synchronized growth and relative valuations—underlying Calamos’ positive view.

The Start of a Multi-Year Cycle

January 19, 2018

Emerging markets in January 2018 look attractive based on their fundamentals, relative valuations, liquidity and relative strength, explains Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager.

Emerging Markets Plus Convertibles

January 19, 2018

Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager, provides the backstory on the 2008 inception of Calamos Evolving World Growth Fund (CNWIX).

Disrupting Financial Services

January 19, 2018

Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager, elaborates on how technologies are disrupting financial services—a development known as FinTech.

A Better Way?

January 19, 2018

Robotics and automation solutions are being adopted by emerging economies eager to boost their productivity while controlling their expenses, says Nick Niziolek, Co-CIO, Head of International and Global Strategies and Senior Co-Portfolio Manager.

Calamos Fixed Income Vs. Passive Investing

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, explains that there are three main reasons to go active over passive: risk management, the composition of fixed income indices and the changing nature of fixed income indices.

Current Fixed Income Concerns

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, outlines his current fixed income concerns: high debt levels, inflation and non-U.S. developments including global central bank policy and the strength of international markets, and liquidity.

The Mistake Fixed Income Investors Make

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, cautions investors not to think about the bond market as one single, monolithic market, but to think about sectors and exposures. The team sees opportunities in select parts of the credit markets, the structured product markets, as well as the international and convertible markets.

Where the Fixed Income Opportunities Are

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, says there are interesting opportunities for a skilled manager in select corners of the credit market.

Fixed Income’s Response to Rising Rates

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, discusses the common misperception that yields all along the curve have a similar reaction when the Fed raises rates. He explains that since the Fed has begun tightening, the long end of the curve has remained well behaved, and the team expects this to continue.

Fixed Income’s Role in a Portfolio

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, says investors need to remember these three reasons to own fixed income: the asset needs to be cheap, provide needed income or serve as a hedge against other positions in a portfolio.

How We Build Our Portfolios for Strong Returns Over Time

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, explains why the team tends to take contrarian positions when building a portfolio.

There are 3 Types of Fixed Income Managers

December 13, 2017

Matt Freund, Co-CIO, Head of Fixed Income Strategies, Senior Co-Portfolio Manager, discusses what sets the Calamos fixed income approach apart.

Corporate Borrowers Could Drive the Next Downturn

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, says a recession is not imminent. Relevering by corporates, not consumers, could be the next problem.

What Makes CPLIX Different

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, says the team has the flexibility to “to play whatever hand the market deals us.”

Equities—Investors Need To Get It Right This Time

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, provides his long-range view of equities.

Equity Risks to Monitor in 2018

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, says 2019 could be the broad topping year for equities. He and his team are monitoring two real risks for equities: the end of the expansion and competition of other asset classes.

Global Allocation Flexibility: The Secret Sauce

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, discusses why the team’s ability to asset allocate equity capital across the entire global equity universe is key in delivering superior returns.

Separating What’s Important from What’s Not

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, says the days of information as an investor’s edge are over. Good decisions, not good information, are what counts now.

Where The Equity Opportunities Are

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, says that utilities, telecom and consumer staples are among the overvalued while opportunities in financials and selective cyclical stocks are being underestimated.

Stable, Synchronized Global GDP Growth—the Game Changer of 2017

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, reflects on the emergence of stable, synchronized global GDP growth that enabled equities to perform well in 2017.

The Fed Seeks the Longest Expansion on Record

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, explains why he’s confident the U.S.’s expansion could continue.

How We Pursue Superior Returns

December 13, 2017

Michael Grant, SVP, Senior Portfolio Manager, describes the appeal of long/short equity: to act like a long-only investor when the environment is favorable and yet to have the flexibility to preserve capital when the environment turns.

Highlighting Some Recent Trades

December 13, 2017

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, explains how convertible arbitrage investors may see opportunities where long only equity investors don’t.

Convertible Arbitrage: An Old-School All-Weather Strategy

December 13, 2017

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, says the goal is to buy low and sell high, generate coupon income and trade around the portfolio.

Why Convertible Arbitrage Is a True Market Neutral Strategy

December 13, 2017

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, explains that convertible arbitrage has performed well in most equity market environments—and that the strategy has done its best in declining equity markets historically.

Convertible Arbitrage Is in Calamos’ Roots

December 13, 2017

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, discusses the extensive background of our convertible arbitrage strategy.

Convertible Arbitrage—Sources of Income

December 13, 2017

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, outlines the sources of income from convertible arbitrage, including: coupon income from the convertible bond, short interest credit, capital appreciation from convertibles and rebalancing/trading profits.

Global Convertible Market Is Healthy

December 13, 2017

Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Senior Co-PM, says the $300 billion asset class is big enough to yield opportunities yet small enough to still be an investment niche.

Finding Income in Calamos Closed-End Funds

August 1, 2016

Robert F. Bush, Jr., Director of Closed-End Fund products, discusses how the Calamos closed-end funds seek to address many key issues facing investors today.

Genesis of Calamos Evolving World Growth Fund

August 1, 2016

Nick Niziolek, Co-CIO, explains the origin of the Calamos Evolving World Growth Fund and the reasons we believe it is a unique emerging market solution.
For more about seeing emerging markets our way, see our microsite www.calamos.com/ourway.

The Long Short Model | Calamos Phineus Long/Short Fund

July 27, 2016

Michael Grant, SVP, Senior Co-Portfolio Manager, breaks down his philosophy and approach to the Calamos Phineus Long/Short Fund. Key topics include the long/short model, manager flexibility, and the structure used to implement investment ideas within the portfolio. Video recorded June 29, 2016.

The Long/Short Model Flexibility of Calamos Phineus Long/Short Fund

July 27, 2016

Michael Grant, SVP, Senior Co-Portfolio Manager, discusses how the Calamos Phineus Long/Short Fund differs from “traditional” long/short funds. Key differentiating characteristics include dynamic asset allocation, manager flexibility and style.

Calamos Chart Talk: Key Secular Themes Driving EM Growth Opportunities

March 8, 2016

Todd Speed, CFA, Portfolio Specialist, discusses some EM secular trends that we believe provide a tailwind for growth.

Calamos Chart Talk: Historically, More Years than Not, the S&P 500 Declined…But Finished Up

February 9, 2016

Scott Becker, CFA, Head of Portfolio Specialists, discusses that even when stocks finish up for the year, drawdowns have been par for the course.

Calamos Chart Talk: Why Big Market Swings Can Be Good News for Gamma Trading

February 8, 2016

Co-Portfolio Managers David O’Donohue and Jason Hill discuss how convertible arbitrage strategies can potentially capitalize from increased market volatility through gamma trading.

Calamos Chart Talk: Alternatives Can Lead to a More Diversified Portfolio

December 1, 2015

Shawn Park, Director of Product Management and Analytics, discusses how the use of alternative investments in a traditional asset allocation can lead to a more diversified portfolio.

Video: Eli Pars Speaks to the Benefits of Convertibles

September 4, 2015

Against the backdrop of equity volatility and an uncertain Fed timeline, convertible securities may provide distinct advantages, explains Eli Pars, CFA.

Calamos Chart Talk: Difference in Returns Between Long/Short Managers

September 4, 2015

Shawn Park, Director of Product Management and Analytics, discusses key components to consider when selecting long/short managers for an asset allocation in alternatives.

Calamos Chart Talk: Why Have Convertible Default Rates Been So Low?

August 17, 2015

Eli Pars, Sr. Co-Portfolio Manager, discusses default rates in the convertible bond market, which have been consistently lower than those of high yield bonds.