mobile
Home > News & Insight > Short Duration Convertible Bonds: A Compelling Alternative to Traditional Fixed Income

White Papers

Short Duration Convertible Bonds: A Compelling Alternative to Traditional Fixed Income

Monday, November 21, 2022

The U.S. Federal Reserve’s fight against inflation through increases in the Fed Funds rate and quantitative tightening has led to the worst year on record for the U.S. fixed income markets (as measured by Bloomberg U.S. Aggregate Bond Index performance of -15.7% year-to-date through October 31, 2022). This environment, when combined with the potential for additional rate hikes, has resulted in significant losses to fixed income portfolios.

When considering allocations to fixed income, convertible securities should not be overlooked. We believe an allocation to Palisade’s Short Duration Convertible Bond strategy can provide investors with an attractive risk-reward profile, particularly in a “higher rates for longer” environment. Our strategy has performed well in periods of rising interest rates and outperformed during fixed income market drawdowns, all while maintaining additional return potential from the hybrid nature of the asset class.

Download the White Paper

For further information regarding this white paper or about Palisade Capital Management, please contact us at info@palcap.com.


More Recent News & Insight

Thursday, October 06, 2022
Palisade Capital Management Ranked Among Top 100 Financial Advisors by CNBC
Posted in Announcements
Palisade Capital Management is pleased to have been recognized in CNBC’s Financial Advisor (FA) 100 rankings for the third consecutive year, rising from number 88 in 2021 to number 56 in 2022. Palisade is proud to be the only New Jersey-based firm included in this year’s rankings.
Read More
Friday, January 27, 2023
Financial Planning Blog: January 2023
Posted in Blogs
Is this the year you will retire?
Read More
Tuesday, January 17, 2023
John Cirillo Joins Palisade as Assistant Vice President, Client Reporting & Analytics
Posted in Announcements
John is Assistant Vice President, Client Reporting & Analytics, with responsibilities that include the management and production of client reporting, portfolio analytics, and marketing materials across all investment strategies.
Read More
Friday, January 13, 2023
Q4 2022 Investor Commentary - 2022 Review…and Outlook
Posted in Market Commentaries
2022 was a rough year for investors. The equity market, as gauged by the S&P 500® Index, fell about 20% last year – the worst year for stocks since the Great Financial Crisis of 2008. Bonds, a usually safe investment, suffered too, as the widely-cited Barclays Aggregate Bond Index dropped by 17% (bond prices fall when rates rise).
Read More
Friday, January 06, 2023
Palisade Capital Management Chief Investment Officer Dan Veru Appears on CNBC’s “Worldwide Exchange”
Posted in Media Appearances
Dan Veru, Co-Chairman and Chief Investment Officer of Palisade Capital Management, joined CNBC to discuss market implications of the Federal Reserve's approach of keeping interest rates "higher for longer" to manage inflation and the increased importance of careful stock selection in this environment.
Read More

View all Latest News & Insight

Connect with Us

One Bridge Plaza, Suite 1095, Fort Lee, New Jersey 07024 | (201) 585-7733 | Get Directions | Contact Us

Stay Informed

Sign up for our mailing list and stay up to date on the latest information and news from Palisade Capital Management.