May 2021

Yields on longer-dated treasury bonds rose sharply over the past year, igniting investor concerns about the impact of rising rates on fixed income returns. The absolute level of yield on the 10-year treasury has historically been the best predictor of 10-year forward returns on fixed income, which makes it difficult for allocators to meet their …

Convertibles – A Superior Fixed Income Alternative in a Rising Rate Environment Read More »

An allocation to low volatility strategies has been a key component for helping to reduce the overall risk levels of a portfolio. They have reduced the overall risk metrics of a portfolio by helping to limit, in some cases, the downside risk during down markets. However, they suffer from a large disadvantage when compared to …

Why should convertibles be considered as a superior option for a low volatility/defensive equity allocation? Read More »

Convertible issuance set a new record in 2020 with $113.7 billion of new issuance. The surge in issuance can be attributed primarily to growth sectors, such as Tech and Healthcare, and a significant number of issuers from recovery companies, primarily in the Consumer Discretionary sector, many of which were negatively impacted by the Covid-19 crisis. …

The Convertibles market saw record issuance and strong performance in 2020. Will this trend continue in 2021? Read More »

The convex nature and low duration characteristics of Convertibles provide an improved risk/reward profile to the underlying equities, with more enhanced downside protection than common equity positions, and less interest rate risk than most other fixed income investments. This allows for a different outcome as market volatility increases, if we should experience a significant downturn …

In 2020, Convertibles delivered its best performance since 2009, why should they be an essential part of your portfolio in 2021? Read More »