Calamos Convertible Opportunities and Income Fund vs PIMCO Corporate & Income Strategy
This page compares Calamos Convertible Opportunities and Income Fund with PIMCO Corporate & Income Strategy, examining how their business models drive performance and how market factors shape outcomes. It presents an accessible review of governance, income strategies, and portfolio contexts, so readers can contrast overarching approaches and potential implications. Educational content, not financial advice.
This page compares Calamos Convertible Opportunities and Income Fund with PIMCO Corporate & Income Strategy, examining how their business models drive performance and how market factors shape outcomes...
Investment Analysis
Pros
- The fund currently offers a high annualised distribution rate above 10%, providing investors with a significant, consistent monthly income stream.
- A diversified portfolio focused on convertible securities and high-yield corporate bonds aims to deliver both capital appreciation and income, with lower interest rate sensitivity than traditional fixed income.
- Recent performance has benefited from active security selection, particularly in technology and industrials, contributing to relative outperformance versus comparable indices.
Considerations
- The fund’s return on equity has been highly volatile, with recent annual swings from -39% to +26%, reflecting considerable earnings instability.
- Monthly distributions have recently included significant returns of capital, which may indicate the current payout is not fully covered by sustainable income.
- Exposure to unrated and lower-rated securities, comprising a large share of the portfolio, increases credit risk and potential for capital loss.
Pros
- Managed by a leading fixed income manager, the fund invests across a wide range of US fixed income sectors, offering diversification and professional credit selection.
- The portfolio’s strategic focus includes government, corporate, and securitised debt, potentially providing stability and resilience in varying market conditions.
- Enterprise value has grown modestly above its historical average, reflecting sustained investor interest and fund expansion over the past year.
Considerations
- As a closed-end fund with a fixed share count, share price may deviate materially from net asset value, introducing additional volatility and potential premium/discount risks.
- The fund’s reliance on macroeconomic factors and interest rate movements means returns could be pressured if rates rise or credit conditions deteriorate.
- Limited transparency into specific holdings and sector allocations makes it harder for investors to assess underlying risk exposures compared to more granular disclosures.
Which Baskets Do They Appear In?
No baskets available in this category
Which Baskets Do They Appear In?
No baskets available in this category
Buy CHI or PCN in Nemo
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Calamos Convertible Opportunities and Income Fund vs Virtus Artificial Intelligence and Technology Opportunities Fund
Calamos Convertible Opportunities and Income Fund vs Universal Insurance
Calamos Convertible Opportunities vs Universal Insurance
Calamos Convertible Opportunities and Income Fund vs First Mid
Calamos Convertible Opportunities and Income Fund vs First Mid