Justin Kass, Portfolio Manager, Allianz Global Investors met with Julie Cooling, Founder & CEO, RIA Channel to discuss convertible bonds and how advisors are using them in client portfolios. A convertible bond is simply a traditional bond plus a warrant or option, Kass explains. The fixed income instrument is designed to produce equity-like returns, but without the volatility of a stock. Allianz’ convertible strategy aims to provide investors with 70% to 80% upside participation of the underlying equity and 50% or less of the downside.
To learn more, head here.