Equity and fixed-income markets are off to one of their worst starts in history, as investors grapple with inflation running at 40-year highs, and seemingly accelerating monthly.
Convertible bonds and volatility go hand in hand given the optionality embedded in a convertible security. At times convertibles act more like stocks and at other times more like bonds. This paper explores that concept and the thesis that higher volatility as expressed by the VIX(1) has historically been a positive for convertible bond performance relative to the S&P 500 Index and a 60% equity/40% fixed income mix(2).
The first quarter of 2022 was painful for financial markets and heartbreaking for those watching the tragic events unfolding in Ukraine. The bond market massacre, beginning last year, accelerated with 10-year U.S. Treasury yields jumping to 2.32% from a low of 0.51% in early August 2020.
Wellesley Asset Management Surpasses $3 Billion in Regulatory Assets Under Management as They Celebrate Their 30th Year Anniversary.
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Wellesley Asset Management, Inc. is an independent, registered investment advisory firm dedicated to help you navigate market volatility. Utilizing convertible bonds, Wellesley offers many different types of investors a non-traditional approach to achieving return while seeking to mitigate risk.
Michael Miller
As President and Chief Investment Officer of Wellesley Asset Management, Inc. and a Portfolio Manager of the firm’s mutual funds, separately managed accounts and private fund.
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Greg Miller
CEO and founder of Wellesley Asset Management in 1991, Greg draws on over thirty-five years of investment and financial experience.
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Convertible bonds may be a suitable investment for absolute return oriented, long-term investors. Wellesley Asset Management offers separate account management for registered investment advisors, sponsored managed account platforms and other institutional investors. Convertibles can offer equity market exposure while seeking principal protection and the relative safety of bonds. Convertible bonds may outperform equities over complete bull and bear market cycles and do so with less volatility than a typical stock portfolio.
Wellesley offers a leveraged convertible bond strategy available through a private placement for accredited investors and qualified clients only.
Wellesley offers three mutual funds that fit a variety of investor risk tolerances with the goal of outperforming equities and fixed income over full market cycles.
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