Calamos Convertible and High Income Fund (CHY)

CHY invests primarily in convertible securities and high-yield corporate debt. Convertible bonds and preferred securities give holders fixed-income features while also offering the potential to participate in equity upside if the issuer’s stock performs well. High-yield bonds, meanwhile, can provide higher coupon income than investment-grade debt, but they also carry greater credit risk. The fund blends these instruments in an effort to create an income-oriented portfolio with participation in broader market growth.

The strategy is aimed at investors who want exposure to credit markets but also seek a different return profile from a traditional bond fund. Convertibles can behave more like bonds in some environments and more like equities in others, making security selection, credit analysis and portfolio positioning important parts of the fund’s approach.

As with other closed-end funds, CHY may employ leverage to support its distribution and return objectives. Leverage can increase the income generated by the portfolio, but it also raises risk when borrowing costs rise or asset prices fall. Calamos Convertible and High Income Fund is therefore a specialised listed fund built around hybrid securities and below-investment-grade credit, rather than a simple income proxy.