Convertible bonds are getting renewed attention as an asset class that offers investors exposure to stocks and bonds while softening the blow on the downside and promising a smoother ride along the way.
“Historically, over a full market cycle, investors have been able to earn similar returns to the equity market, but with about a third less volatility,” he says. Arone says the returns in convertible bonds have been “pretty good” in 2023, with total returns of 2% this year for the $3.4 billion SPDR Bloomberg Convertible Securities exchange-traded fund , compared with negative returns for traditional bonds. The $89 billion broad-market iShares Core U.S. Aggregate Bond ETF is down 2.5% this year.
Calamos has a long history in convertibles and a large stable of funds, including the flagship $837.2 million Calamos Convertible fund and the $121.1 million Calamos Global Convertible fund , both of which are actively managed. In October, the firm launched its first convertibles ETF, the actively managed Calamos Convertible Equity Alternative .
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