Convertible securities are hybrid investments that offer yields and the potential repayment of par value like bonds with the option of transforming the investor’s exposure to common equity. Index-tracking exchange traded funds targeting the convertibles market have been around for years, but have lately been fraught with concentration risk.
In this episode, Brad Zigler, WealthManagement.com’s alternative investments editor, welcomes Edward Rosenberg, senior vice president and head of ETFs at American Century Investments, together with Rene Casis, vice president and portfolio manager of the American Century Quality Convertible Securities ETF (QCON), to discuss the place actively managed convertibles exposure has in a well-diversified portfolio.
Brad and his guests discuss:
- How convertible securities provide equity market exposure at reduced risk;
- How active management of a converts portfolio can adjust for market conditions; and
- How an investment in QCON can also benefit cancer patients.