Hello, I'm Bob Behan, Head of Global Distribution
of Calamos, and joining me today is Eli Pars,
a senior member of our investment team with
28 years of investment experience and nine
here at Calamos.
We are here to talk about some of the market
volatility and to get your take on what's
going on Eli.
The recent volatility shows some of the benefits
of taking a risk managed approach to investing.
At Calamos, we've always tried to use convertibles
as a way to try to get equity-like returns
but with less volatility over full market
cycle—and we’re seeing some of the benefits
that now.
With everything going on in the macro environment
and where interest rates are, you’ve seen
a lot of investors pushed into equities.
And for those investors who were formerly
in bonds and now investing in equities, the
volatility of the recent weeks is kind of
scary.
Convertibles allow you a way to maybe get
that equity exposure with less volatility,
at least that's what we've seen historically,
and maybe get to sleep at night.
Do you feel like volatility will continue?
Where are we in that cycle?
We generally feel like we’re still in a
bull market but we’re definitely going through
correction phase.
As you get longer in a bull market you tend
to get more volatility and we’re probably
seeing that.
Our expectation is we will see continued volatility
over the next two years.
How do you feel about issuance in the convert
market and the health of the convert market
altogether?
Issuance has been strong the last couple years
and has continued this year.
It’s pretty quiet in the summer, but that's
pretty normal.
Our expectations are for pretty decent issuance
both in the U.S. and outside the U.S. going
forward and we’ve seen that the so far this
year.
Thank you Eli.
For more information and additional investment
insights please visit us at www.Calamos.com
at the market insights section.
