Opportunities still exist in high yield debt: calamos

An active exchange-traded fund manager said there are still opportunities for fixed income with higher yields despite volatility in the bond market, especially after the poor auction last week, the U.S. Treasury tax rate rose in the last 10 years.

$11.1 million co-manager Matt Freund Pens that replace Nasdaq and Bond ETF (CANQ)High yields, bank loans, emerging market debt and other high-risk fixed income sectors can still bring good value to the risks taken, said Calamos Investments Co-sector Investments officials. Although he expects the U.S. economy to soften, he has not yet expected a recession.

“I’m not willing to commit, ‘Yes, we’re in a recession.’ I think it’s too early, depending on many factors that have not been identified…the fundamentals are still good,” he said.

CALAMOS Investments is a global investment manager founded in 1977 and has started in the convertible bond space. It launched an actively managed CANQ as its second ETF in February 2024. The fund uses options-based exposures of Nasdaq 100 stocks and diversified fixed income holdings.

To gain exposure to fixed income, CANQ uses several fixed income ETFs, including Simplified MBS ETF (MTBA)accounting for 22.3% of fund allocation Vanguard Emerging Markets Government Bond ETF (VWOB) at 20% and SPDR Portfolio High Return Key ETF (SPHY) Fill in the top three of the funds by weight at a price of 14.5%. Fixed income is 77.2% of the fund allocation. The fund has a distribution yield of about 5.5%, while the weighted credit of BBB- is.

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Although this seems to be Flood pointed out that in the turbulent bond market, the credit risk is high, with Kank's duration being 3.1 year-to-year Core American Total Key ETF (AGG)duration is 5.8 yearsAgg's production is lower at 3.8%.

Given his views on the U.S. economy, shorter durations and higher CANQ and Agg yields, Flund said: “I don’t pay too much attention to high yield distribution.”

If the current tariffs are not resolved, Congress cannot get current tax cuts or inflation rises again, he may start to back off the risk.

"If I'm wrong with the recession, if I'm wrong with taxes, if I'm wrong with tariffs, and you have geopolitical (the problem), then, that obviously leads to us lowering our risk budget," he said.