US Convertibles Regain Appeal: Equity Upside with Bond-Like Stability

This report, authored by Voya Investment Management and presented by Allianz Global Investors, explores the current attractiveness of US convertible securities for investors seeking equity-like returns with reduced volatility.

• Asymmetric return profile: US convertibles have historically captured more market upside than downside, offering compelling risk-adjusted returns over 35+ years.

• Improved issuance dynamics: Rising interest rates have led to more favorable terms for new convertible issues, expanding the investment universe.

• Active management advantage: A dynamic market and varied security profiles reinforce the need for active strategies to manage risks and capture alpha.

Explore the full report for insights into convertible classifications, market behavior, and how to position this hybrid asset class in your portfolio.