The Case for Convertibles

A More Conservative Approach For Equity-like Returns

Convertible securities can provide a total return over a full market cycle comparable to the return provided by equities, but with less volatility and higher current income

Yield Advantage

Most convertibles pay a higher rate of current income than the underlying common stock

Lower Volatility Translates to Asymmetric Returns

Compared to common equity, convertibles' hybrid nature of being higher in the capital structure, while also convertible, enables more upside participation than downside, resulting in less volatility