SPDR Bloomberg Barclays Convertible Securities ETF [CWB] Stock Forecast

Rising long-term interest rates make long-term treasuries a viable alternative to equities, with potential for downside protection. Convertible bonds offer characteristics of both stocks and bonds, providing upside potential and income potential in declining equity markets. The SPDR Bloomberg Convertible Securities ETF is the largest convertible ETF, but it has underperformed stocks and high yield bonds in the past year.

Hello, VettaFi Voices! The Wall Street Journal mentioned today that the 10-year Treasury yield is the highest it's been since 2007 as we head into another earnings season.

The convertible bond market has long been an appealing place to look for total return potential. However, demand for convertible bond ETFs has been minimal.

An upside to rising rates is the market's reintroduction to fixed-income assets providing a decent income. As exciting as auctions and secondary market sales are, though, typical Treasuries lack the excitement of active stock trading.

Calamos Investments has an extensive history as an active mutual fund manager, but it made a splash in the ETF space when it launched its first ETF in partnership in February 2023.

CWB holds a diversified portfolio of convertible bonds. About 80% of the portfolio's issuers have no credit rating.

When considering that convertible bonds are among the fixed income assets that behave most like stocks, 2022 was a dreadful year to be engaged with this asset class. The SPDR Barclays Convertible Securities ETF (NYSEArca: CWB), which is the largest exchange traded fund dedicated to convertible bonds, slid 20.

Convertible bonds were, at one time, an excellent "hybrid" investment. That is no longer the case, thanks to years of loose Fed-induced monetary conditions.

Convertibles are bond/stock hybrids that can offer a combination of the downside protection of bonds and the upside potential of stocks.

Canadian Western Bank has been printing more shares to support a balance sheet expansion. This should result in an above-average net interest income increase in the next few quarters.

SPDR Bloomberg Barclays Convertible Securities ETF is a US stock and trading under the symbol CWB

SPDR Bloomberg Barclays Convertible Securities ETF stock price is $69.5601 today.

Yes, SPDR Bloomberg Barclays Convertible Securities ETF is a publicly traded company.