The Convertible Market generated positive returns and outpaced major fixed income asset classes in the first half of 2021. As represented by the ICE BofA ML All US Convertible Index (VXA0), the asset class returned 6.90%. This was primarily driven by strong performance of the underlying equities at 12.45%. Convertibles benefited from strong returns in cyclical market segments, while balanced Convertibles outperformed equity like Convertibles and yield alternatives.
Convertible Bond 2022 Review and 2023 Outlook
The S&P 500 Index, along with most other market indices, rose during the first day