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