Calamos Convertible And High Income Fund Q3 2025 Commentary
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Calamos Investments551 FollowersFollow5ShareSavePlay(11min)CommentsSummaryThe third quarter marked a pivotal shift in the monetary policy landscape as the Federal Reserve initiated its first rate cut of 2025, lowering the federal funds rate by 25 basis points.For the quarter ending March 31, 2025, the fund advanced 4.91% on price and +9.97% on NAV.Global new convertible issuance was exceptionally robust, with Q3's $54.4 billion representing one of the strongest third-quarter volumes in recent memory.The hybrid structure of convertible securities—combining equity-like growth potential with bond-like risk-mitigation characteristics—offers an attractive risk-reward proposition in this environment. xijian/iStock via Getty Images Market Overview The third quarter marked a pivotal shift in the monetary policy landscape as the Federal Reserve initiated its first rate cut of 2025, lowering the federal funds rate by 25 basis points. While modest inThis article was written byCalamos Investments551 FollowersFollowCalamos Investments is a diversified global investment firm offering innovative investment strategies including U.S. growth equity, global equity, convertible, multi-asset and alternatives. The firm offers strategies through separately managed portfolios, mutual funds, closed-end funds, private funds, an exchange traded fund and UCITS funds. Clients include major corporations, pension funds, endowments, foundations and individuals, as well as the financial advisors and consultants who serve them. Headquartered in the Chicago metropolitan area, the firm also has offices in London, New York and San Francisco. For more information, please visit www.calamos.com.Quick InsightsHow did CHY's Q3 NAV and price returns compare to its benchmark?CHY's NAV rose 9.97% and price 4.91% for Q3, both outperforming the blended comparator index's 5.53% return.What portfolio shifts or sector exposures are most notable for CHY?CHY increased allocations to information technology and energy, maintained overweights in application and systems software, and underweighted consumer staples and real estate.How does CHY's leverage and distribution rate position it versus market alternatives?With 34% leverage and a 10.70% annualized distribution rate, CHY offers a yield well above the ICE BofA US Convertibles Index (1.94%) and US high yield (6.56%).Recommended For You