ECF - Convertible Issuance Performance Rising Rates And The Risk Of The Passive Approach: CICVX PMs On 2021

• People who see CICVX's 48.77% 2020 return and ask, "Did we miss it?" aren't considering what's unique about investing in convertibles, according to the portfolio managers.
• While a 100-basis point rate rise can be a headwind for traditional fixed income, converts often have a different response because of the embedded optionality within convertibles.
• As optimistic as the team is about the economy in 2021, they see the potential for uncertainty and volatility in the transition to re-open the economy, a changed fiscal policy, how or whether the Fed begins to unwind the massive liquidity in the system.

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