Global Convertible Market Update: Portfolio Manager Q&A
Diverse opportunities in Global Convertibles, as well as structural features, provide tailwinds to counter rising rates and equity volatility. In rising rate environments, convertibles have historically done quite well relative to longer-duration traditional fixed income investments.
1Q 2022 Outlooks from the Calamos Investment Team
Given the many forces shaping the economy and markets, 2022 will be a stock picker’s—and a bond picker’s—market. Prices are indeed stretched in pockets of the market, but many areas offer attractive potential supported by compelling fundamentals and exposure to growth themes.
Navigating Shifting Crosscurrents: 4Q 2021 Outlook
The receding pandemic should continue to provide a tailwind. However, as economies begin to normalize, expectations for the future path of monetary and fiscal policies are shifting. And as markets adapt to a post-Covid economy, we expect increased volatility, more rotational markets, and leadership changes. The risk of a policy error has also increased at the margin, with future Federal Reserve leadership and policy more uncertain today than a month ago.
Emerging Markets in 2021: The Case for Increasing Exposure Now
The weak dollar, low-interest rates, and accelerating growth—these are just three of an array of factors that argue in favor of increasing your clients exposure to emerging markets.
Join us Wednesday, March 10, for a review of EM investment opportunities. Headlining our webcast panel will be Calamos Founder, Chairman, and Global Chief Investment Officer John P. Calamos, Sr. Joining John will be:
- Nick Niziolek, CFA, Co-CIO, Head of International and Global Strategies, Senior Co-Portfolio Manager
- Todd Speed, CFA, Senior Vice President, Portfolio Specialist
In addition to covering secular growth themes (monetary and fiscal stimulus, China’s global leadership, growth and inflation expectations, the weaker dollar, and strengthening liquidity), you’ll hear the Calamos’ take on several thematic tailwinds driving the EM opportunity, including:
- EM technology
- Global payments ecosystem
We’ll conclude our discussion with a review of the differentiated approach of Calamos Evolving World Growth Fund (CNWIX), which has successfully pursued a favorable risk/reward skew through bottom-up security selection, top-down thematic analysis, and opportunistic use of less-well-known asset classes, such as convertible securities.
New Year, New Risks: What to Know About Putting Convertible Securities to Work in 2021
As a sequel to Advisor Perspectives’ best-attended sponsored webcast of 2020, our Feb. 4 webcast will prepare you to put convertibles to work to anticipate risks that include a new administration with new priorities, rising rates, and even the ever-changing convertible market.
Convertibles were by far the best performing major asset class last year, and hundreds of investment professionals experienced the benefit of using them for the first time. Join us as our panel of preeminent experts—including John P. Calamos, Sr., who is widely recognized as the pioneer of using converts to manage risk/reward—advance the discussion. You’ll learn about evolving convertible market dynamics (including near-record levels of issuance and new issuers) and the additive effect of actively managed convertibles as a risk-managed allocation.
Adding Convertible Strategies to Your Playbook
What’s your best guess about what happens next? Seesaw markets? V-shaped recovery? Further equity declines?
Join us at 2 p.m. ET Thursday, May 7 to hear about how convertible securities can help you prepare for multiple possible scenarios. At all times, convertibles are a strategic allocation that can provide added diversification to a portfolio. What’s intriguing investment professionals in this turbulent environment is how convertibles have historically helped manage the risk of equity investing.
Because they’ve provided comparable equity returns with less volatility, including convertibles in a portfolio can help keep clients invested.
Headlining our webcast panel will be Calamos Founder, Chairman, and Global Chief Investment Officer John P. Calamos, Sr., widely recognized as the pioneer of the convertible asset class. Joining John will be:
- Eli Pars, CFA, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies,
Senior Co-Portfolio Manager, including of Calamos Market Neutral Income Fund (CMNIX), the industry’s largest alternative fund (Morningstar data, 3/31/20)
- Joseph Wysocki, CFA, Senior Vice President, Co-Portfolio Manager, including of the
Calamos Convertible Fund (CICVX)
Why CTSIX’s Nelson Is Optimistic About the Recovery, Corporate Profitability and Small Caps
One month after the depths of the equity market decline, Brandon Nelson expresses optimism about the prospects for the country’s health, corporate profitability and what he calls “exciting” small companies in the Calamos Timpani Small Cap Growth Fund (CTSIX) portfolio.
Markets See Light at the End of the Tunnel: Recovery by July, Says CPLIX’s Grant
While predicting that “economic activity in March and April will be the worst of our professional careers,” Grant nonetheless says markets see light at the end of the tunnel that includes economic recovery by July.
Staying Opportunistic with Convert Arb, Hedged Equity Positioned CMNIX for Rally Back
The dual strategies of convertible arbitrage and hedged equity helped Calamos Market Neutral Income Fund (CMNIX) weather the recent drawdown while being positioned for future opportunities.
Convertibles: Providing Risk Management and Positioned for a Snapback
The stage is being set for what we internally call the “convertible trifecta.” The markets are uncertain right now. But when markets eventually calm, the team would expect to see the combined forces of equity upside, credit upside and convert valuation gaps closing, which can be very powerful on the way back up.
This Multi-Phase Crisis Can Be Navigated if We Join Forces to Thread the Needle
Matt provides a framework that he and his team use to make sense of the headlines and the price bids flashing on their monitors. His realistic, yet hopeful outlook provides a roadmap for successfully navigating this universal crisis together.
Indiscriminate Selling Has Driven Closed-end Fund Discounts, Creating Compelling Value
Even with all the benefits attributable to closed-end funds—intraday trading, low financing costs of leverage, ability to be fully invested, and consistent source of income—they have some idiosyncrasies that present challenges, especially during extreme volatility
There Is a Way Out of the Coronavirus Crisis, and Long-term Opportunities in an Oversold Equity Mark
The pace of government and private sector response will likely be slower than we may like, but we have the collective knowledge to address the pandemic, including support to individuals and businesses.
China Could Be a Growth Engine for Global Recovery in 2H 2020
Global markets have not yet reached a bottom, but Nick Niziolek believes the global economy and markets could be in recovery mode by the second half of the year, with China and other overseas markets making strong contributions.
Market Update: Is Panic the Primary Pandemic?
Equity markets have bounced around rather dramatically in recent weeks (up and down) as investors are trying to get a grasp of the impacts of Covid-19 (aka Coronavirus). While there will clearly be economic softening from Covid-19, the base case is that it will be transitory.
Finding Growth in a Low-Growth World
Never underestimate the growth potential of a small company with a good idea and a solid plan. The rest of the world may be on pause, but there’s no stopping the forward momentum of U.S. creators, innovators and disruptors.
Join us at 2 p.m. EDT Tuesday, September 24, 2019, to learn why the Calamos Timpani Small Cap Growth Fund (CTSIX) team is enthusiastic about the opportunities it’s finding today. With small caps trading at a discount not seen since 2003, the price is right—and the potential for growth is irresistible.
Presenting on this Advisor Perspectives-produced Webcast will be Brandon M. Nelson, CFA, Senior Portfolio Manager, and Ryan Isherwood, CFA, Senior Research Analyst, Co-Portfolio Manager. Nelson and Isherwood joined Calamos following our 2019 acquisition of Timpani Capital Management, the company Nelson co-founded in 2008. Nelson served as Chief Investment Officer and Portfolio Manager of the Timpani strategies since inception. The Calamos Timpani Small Cap Growth Fund combines fundamental research with the analysis of market estimates to identify the underestimated growth differential between a company’s business strength and market expectations of that strength.
April 2019 Economic Outlook
Looking forward, we believe the U.S. economy will extend its steady expansion through this year and beyond. The global economy is positioned for moderate growth, with a pickup in the second half of the year. The relatively weaker earnings season currently underway reflects a high bar in terms of year-over-year earnings growth...
Following a painful and broad fourth quarter selloff, risk assets rebounded in the first weeks of 2019 as optimism has grown about Fed accommodation, earnings, China stimulus and an eventual trade dispute resolution. However, investors should be prepared for choppy markets, especially through the first half of the year.
When Volatility Attacked
December’s market volatility was what most investors would expect to see only in a stress test scenario. The VIX jumped from 16 to 36 and back down to 25 all in the span of one month. We talked to Dave O’Donohue, Senior Vice President and Co-Portfolio Manager, about how he and the Calamos Market Neutral Income Fund (CMNIX) and Calamos Hedged Equity Income Fund (CIHEX) team view volatility and how they reacted to the big swings in volatility during December.
October 2018 Economic Outlook
Whether or not one believes in the “October Effect,” investors can’t be blamed for giving it credence this year. Worries about trade, the Federal Reserve and global growth roiled the markets as the fourth quarter began. Even U.S. equities—which had roared through the third quarter as investors focused on positive economic data—succumbed to the selloff that gripped risk assets.
When Volatility Surges, Stay Long Term
I believe the economy can withstand this short-term pullback and continue on its growth trajectory for the next year, if not longer. There are many reasons to be positive on the U.S. economy. Even if markets move sideways over these next months and volatility intensifies, there are still many opportunities, including in equities, convertibles, fixed income and alternative strategies.
July 2018 Economic Outlook
Fears of an imminent U.S. recession are premature; tax policy and a more business-friendly regulatory environment provide long-term catalysts for the economy. Although conditions outside the U.S. are less encouraging, positive global growth should continue, albeit with growing divergence among countries.
Convertible Securities: Reason for Optimism in 2H 2018 and Beyond
During the second half of the year, convertibles should benefit in advancing but volatile equity markets. Convertibles have outperformed bonds during rising rate environments. Thanks to their equity characteristics, convertible securities have performed well versus bonds during periods of rising interest rates—including this most recent period.
Our Perspective on Growth vs. Value
Last week’s Barron’s cover story asked whether U.S. value stocks are primed to break out of their “funk” after 10 years of underperformance vs. growth stocks. Many of the “growth” companies that dominate growth indexes/portfolios and look more “expensive” are actually the winners of secular changes that have occurred while value indices/portfolios are littered with casualties of the change.
April 2018 Economic Outlook
Conditions we are seeing today are more normal than recent years, when investors grew accustomed to record low interest rates, a near-absence of inflation and the subdued volatility. We expect coordinated global economic expansion will continue through 2018, although improvements in some economic fundamentals may have peaked.
Current Fixed Income Concerns
Matt Freund outlines his current fixed income concerns: high debt levels, inflation and non-U.S. developments including global central bank policy and the strength of international markets, and liquidity. To learn more visit: http://bit.ly/AskPM-FI
The Mistake Fixed Income Investors Make
Matt Freund cautions investors not to think about the bond market as one single, monolithic market, but to think about sectors and exposures. Here he explains where the team sees opportunities. To learn more visit: http://bit.ly/AskPM-FI
Fixed Income’s Response to Rising Rates
Matt Freund discusses the misperception that yields along the curve have a similar reaction when rates rise. Since the Fed has begun tightening, the long end of the curve has remained well behaved. To learn more visit: http://bit.ly/AskPM-FI
Why Convertible Arbitrage Is a True Market Neutral Strategy
Eli Pars explains that convertible arbitrage has performed well in most equity market environments—and that the strategy has done its best in declining equity markets historically. To learn more visit: http://bit.ly/AskPM_Alt
Convertible Arbitrage—Sources of Income
Eli Pars outlines the sources of income from convertible arbitrage, including: coupon income from the convertible bond, short interest credit, capital appreciation from convertibles and rebalancing/trading profits. To learn more visit: http://bit.ly/AskPM_Alt
Convertible Arbitrage: An Old-School All-Weather Strategy
Eli Pars, Co-CIO, Head of Alternative Strategies and Co-Head of Convertible Strategies, Sr. Co-PM, says the goal is to buy low and sell high, generate coupon income and trade around the portfolio. To learn more visit: http://bit.ly/AskPM_Alt
Global Allocation Flexibility: The Secret Sauce
Michael Grant, SVP, Senior Portfolio Manager, discusses why the team’s ability to asset allocate equity capital across the entire global equity universe is key in delivering superior returns. To learn more visit: http://bit.ly/AskPM-PLS
Where The Equity Opportunities Are
Michael Grant, SVP, Senior Portfolio Manager, says that utilities, telecom and consumer staples are among the overvalued while opportunities in financials and selective cyclical stocks are being underestimated. To learn more visit: http://bit.ly/AskPM-PLS