Calamos Convertible and High Income Fund (CHY)

Overview

The Calamos Convertible and High Income Fund is a multifaceted financial instrument created to offer investors a hybrid of current income and capital appreciation. This closed-end fund strategically deploys its investments across convertible securities and high-yield bonds, aiming to leverage the composite benefits of fixed income and potential equity growth. Convertible securities endow the fund with a peculiar flexibility, permitting conversion into a pre-agreed number of common shares, thereby tapping into the equity markets' upside while maintaining a foothold in the relative safety and steady income stream of bonds. Additionally, the inclusion of high-yield bonds, despite their increased risk level, serves to elevate the income generated, setting this fund apart as a distinctive choice for investors inclined towards diversified income avenues alongside capital growth opportunities.

Products and Services

• Convertible Securities:

Convertible securities are a cornerstone of the Calamos Convertible and High Income Fund's investment strategy. By offering the potential for conversion into equity, these instruments provide a pathway to participate in stock market gains without relinquishing the inherent benefits of bonds. This dual nature enhances the fund's adaptability, allowing it to pivot between the security of fixed-income investments and the growth potential of equities based on market conditions.

• High-Yield Bonds:

Another critical component of the fund's portfolio is its commitment to high-yield bonds. These instruments, often characterized as "junk bonds," are selected to augment the fund’s income potential due to their higher interest payments relative to investment-grade bonds. While they introduce a greater level of risk, the inclusion of high-yield bonds is justified by the potential for increased returns, making the fund an attractive option for investors seeking higher income streams in conjunction with capital appreciation prospects.