This report explores the strategic benefits of incorporating unlevered convertible arbitrage into your portfolio as a risk mitigating strategy. It delves into why “higher for longer” is helpful and explores the strategy’s return experience over its 29-year track record.
The Investment Grade Convertible bonds asset class has outpaced a wide array of other fixed income segments over multiple time periods. Strong returns are just one appealing aspect, as IG converts offer additional characteristics, particularly for insurance companies.
SSI highlights the importance of considering correlation alongside other key variables, such as expected returns, volatility, beta, and risk premium capture to craft a robust portfolio strategy.
