AGC - Convertible Securities: Reason For Optimism In 2H 2018 And Beyond
By John P. Calamos, Sr.
Convertible securities may be less well known than stocks and bonds, but they offer many potential benefits. Convertibles combine characteristics of stocks and bonds; and with active management, they can enhance overall portfolio diversification and support multiple asset allocation goals. For example, convertibles can be used for lower-volatility equity participation and enhanced fixed income exposure. They can also be used within alternative strategies. (To learn more about how convertibles work, read our in-depth guide.)
Because of their versatility, we believe convertibles are best thought of as a strategic allocation