Calamos Convertible Opportunities And Income Fund Q3 2025 Commentary
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Calamos Investments551 FollowersFollow5ShareSavePlay(12min)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 September 30, 2025, the fund rose 5.40% on price and 9.77% on NAV.It also provided a tailwind for the convertible market, where issuers tend to be small- and mid-cap focused companies.As of quarter end, the portfolio's largest allocation resides in convertible securities, accounting for approximately 70% of our investments.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. Galeanu Mihai/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 modestThis 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 CHI’s Q3 2025 performance compare to its benchmark?CHI’s NAV return was 9.77% for Q3 2025, exceeding the blended comparator index’s 5.53% return over the same period.What portfolio positioning supports CHI’s current distribution and risk profile?Approximately 70% in convertibles, 24% in corporate bonds, 62% unrated securities, and 34% leverage underpin CHI’s 10.57% distribution and balanced risk-reward.What forward-looking factors could drive CHI’s returns into year-end?Pro-growth fiscal policy, further Fed rate cuts, strong equity momentum, and robust convertible issuance are expected to support CHI’s performance and distribution sustainability.Recommended For You