NCZ: Convertibles Should Be Superior To Traditional Bonds

2025-06-13 05:01:13 ET

The Virtus Convertible & Income Fund II ( NCZ ) is a closed-end fund that provides investors with a way to obtain a high level of current income without the need to invest in fixed-income securities. This is something that has proven to be quite valuable over the past few years as a combination of excessively low interest rates and inflation have caused many fixed-income securities to fail in their basic task of preserving an investor’s wealth while providing a relatively low return in exchange for the investor putting off spending their money on consumption until a future date. We can see this quite clearly by looking at the inflation-adjusted total returns provided by a few different fixed-income indices over the past ten years:

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