The best way to access convertible bonds

The best way to access convertible bonds

The dual equity/bond features of convertible bonds are increasing in popularity as developed markets recover from recessionary lows. But what is the best way to access them? John P Calamos, CEO of Calamos Advisors, tells Investment Week his strategy.

Convertible strategies are enjoying a resurgence in the current environment of potential higher interest rates and increased volatility. In the first four months of 2014, convertible valuations have benefited from a confluence of factors, including a narrowing of bond market spreads and equity market volatility. Growing concern about the impact of rising interest rates (most immediately in the US) on straight debt has furthered the appeal of the asset class because convertibles’ equity characteristics have made them less vulnerable to rising interest rates compared with non-convertible d...