Until recently, inflation has been seemingly non-existent. Between 2008 and the beginning of 2021, inflation had increased by approximately 1.6% per year. Fast forward to today — a basket of goods and services as measured by the Consumer Price Index (CPI) has risen by over 5% each month since May 2021.
Equity Market Exposure, Pursuing Principal Protection
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.