CHW: Better Inflation Protection Than Fixed-Income, But Not Without Risks
The Calamos Global Dynamic Income Fund offers an 8.72% yield, primarily through equities and convertibles, providing inflation protection superior to traditional bond funds. CHW's portfolio is 79% equities and convertibles, with notable underweight to technology versus the MSCI ACWI, reducing sector concentration risk. Recent performance shows CHW outpacing the MSCI ACWI on a total return basis due to its high yield, despite modest price underperformance.
CHW: The Discount Is Attractive, But The Strategy Isn't Working (Rating Downgrade)
Calamos Global Dynamic Income Fund is downgraded to 'Hold' due to concerns over higher interest rates and limited upside participation. CHW trades at a 9.45% discount to NAV, offers an 8.1% yield, and maintains strong dividend coverage, but net investment income remains weak. The fund's aggressive 28.83% leverage and income-focused securities may amplify downside risk in a high-rate or declining equity environment.
5 Deeply Discounted CEFs Paying Up To 10.2%
This is one pricey market, and if you're hesitant to put new money to work, I am sympathetic. After all, we're here for the dividends.
CHW: 7% Yield On Global Assets (Rating Downgrade)
The Calamos Global Dynamic Income Fund dynamically allocates assets across global equities, convertible bonds, and fixed-income securities to generate high current income and capital appreciation. The fund offers a 7.41% yield paid monthly. Its portfolio consists of roughly half US and half international holdings, with its largest sector allocation in Technology (24%) and Taiwan Semiconductor as its top individual holding. While CHW has a solid track record of outperforming its peer category over 1-, 3-, and 10-year periods, it is highly sensitive to rising interest rates and carries notable risks related to its use of leverage and high concentration of unrated corporate bonds.
