FREDERICA ABAN/iStock via Getty Images By Eli Pars, CFA For Q1 2026, Global convertibles once again performed well compared to equities, delivering a 2.0% gain as measured by the FTSE Global Convertible Bond Index, while the MSCI World Index was down -3.5%. The equities underlying the global convertible index also held up better than the global equity market, declining only -0.84%. Calamos Global ...
FREDERICA ABAN/iStock via Getty Images By Eli Pars, CFA For Q1 2026, Global convertibles once again performed well compared to equities, delivering a 2.0% gain as measured by the FTSE Global Convertible Bond Index, while the MSCI World Index was down -3.5%. The equities underlying the global convertible index also held up better than the global equity market, declining only -0.84%. Calamos Global Convertible Fund ( CXGCX ) moved around with the market during Q1 2026 but finished basically flat, posting a return of 0.50% at quarter end. This is sometimes referred to on Wall Street as “aggressively unchanged.” As we have discussed in our past commentaries, our goal is lower-volatility participation in the global equity market over the long term. We position the portfolio with the aim of capturing the majority of equity upside while maintaining downside resilience. We believe our dual focus on achieving returns and mitigating risk will serve the fund. Last quarter, we talked about how “geopolitics can add plenty of curveballs.” Well, that ended up being quite an understatement. But the market is holding up well, in our view. From the start of the Middle East war on February 28 through the end of the quarter, the S&P 500 Index is down just under 5%. On January 1, 2026, the S&P 500 was up 86% cumulatively over the past three years. Considering that, a 5% correction seems pretty tame to us. We see many of the same tailwinds supporting economic growth as we saw at the start of the year: short-term rates more likely to move lower than higher and a global construction boom driven by the AI data center buildout. However, until we get some resolution in Iran, it is difficult to get aggressive. We’ll continue to lean into convertibles’ downside risk mitigation. One of the challenges in the global convertible market today is the combination of its narrowness and the violent upside movement of some of the winners, which have risen 5x to 10x within a couple of years. This handful ...
At least two attackers were killed and one was seriously injured in an extended gun battle between police and assailants directly outside the building housing the Israeli consulate in Istanbul on Tuesday, according to media reports and Reuters video. Reuters video showed police officers pulling out guns and taking cover as shots rang out for at least 10 minutes. One person was covered in blood....
At least two attackers were killed and one was seriously injured in an extended gun battle between police and assailants directly outside the building housing the Israeli consulate in Istanbul on Tuesday, according to media reports and Reuters video. Reuters video showed police officers pulling out guns and taking cover as shots rang out for at least 10 minutes. One person was covered in blood. Other footage obtained by Reuters showed an apparent attacker moving among parked white police...
He had been without a club since leaving Pumas last year ‘It has been my privilege to wear the Welsh shirt’ The former Wales captain Aaron Ramsey has announced his retirement from football at the age of 35. The midfielder, who spent more than a decade with Arsenal before stints with the likes of Juventus, Nice, Cardiff and Rangers, has been without a club since leaving the Mexican side Pumas at th...
He had been without a club since leaving Pumas last year ‘It has been my privilege to wear the Welsh shirt’ The former Wales captain Aaron Ramsey has announced his retirement from football at the age of 35. The midfielder, who spent more than a decade with Arsenal before stints with the likes of Juventus, Nice, Cardiff and Rangers, has been without a club since leaving the Mexican side Pumas at the end of last year. Continue reading...
Hours away from President Trump's 8 pm ET Tuesday deadline for Iran to open the Strait of Hormuz, attacks continued in the Persian Gulf with no agreement in sight. Trump has threatened to bomb Iranian bridges and power plants if a deal is not reached. (Image credit: Majid Saeedi)
Hours away from President Trump's 8 pm ET Tuesday deadline for Iran to open the Strait of Hormuz, attacks continued in the Persian Gulf with no agreement in sight. Trump has threatened to bomb Iranian bridges and power plants if a deal is not reached. (Image credit: Majid Saeedi)
Getty Images Mesabi Trust ( MSB ) may start to benefit as a US-based iron ore play on account of the fact that more marginal producers in countries with threatened energy supplies due to the Iran War could have to restrict meaningful capacity for the standards of a commodity that Cleveland-Cliffs Inc. ( CLF ) and others downstream could swing into. We think the improvement in iron ore prices and p...
Getty Images Mesabi Trust ( MSB ) may start to benefit as a US-based iron ore play on account of the fact that more marginal producers in countries with threatened energy supplies due to the Iran War could have to restrict meaningful capacity for the standards of a commodity that Cleveland-Cliffs Inc. ( CLF ) and others downstream could swing into. We think the improvement in iron ore prices and possibly volume improvements could be sustained, assuming logistical problems persist. We expect incremental improvement in Q4 for MSB. Iron Ore and Mesabi The headlines that we are quite interested in are set around Australia. Their issue with sourcing sufficient energy, despite being a resource-rich country, is causing operational concerns for heavy industry. In the case of iron ore mining, marginal producers may be threatened by logistics bottlenecks that could occur due to sputtering supply. A quick back-of-the-envelope calculation is that Fenix, specifically mentioned in the article, has around 4 million mtpa production. Global capacity is around 2,500 million mtpa ; therefore, it's not an insignificant amount just for this one producer. Using 80:20 assumptions for the 900 million mtpa in Australian production, around 180 million in total could be considered marginal. Therefore, there could be as much as 5-10% supply at risk coming from Australian mining operational issues. Additionally, there are other threats, such as cyclones that affected just the Rio Tinto Group ( RIO ), 8 million tons of output, so around 0.4% of global supply. On the other hand, the BHP Group Limited ( BHP ) row continues with China taking aim at structurally pressuring down its major imports of seaborne iron ore. It may materalise into pressure on iron ore benchmarks. Furthermore, cargoes may flood the market on the issue, which could surge supply a bit and at discounts, which could also have an effect on benchmarks for the coming MSB Q4. Ultimately, Mesabi is dependent on iron ore volumes and p...
Ackman moves to force Universal Music into a U.S. listing, Broadcom gets new Google deal, healthcare stocks boosted by Medicare payment rate increase, and more news to start your day.
Ackman moves to force Universal Music into a U.S. listing, Broadcom gets new Google deal, healthcare stocks boosted by Medicare payment rate increase, and more news to start your day.
Xponential Fitness ( XPOF ) broke higher in early trading on Tuesday after the franchisor of boutique fitness studios announced that its board has initiated a review of strategic alternatives to maximize shareholder value. As part of this process, the board's independent directors will evaluate a range of potential alternatives, which may include a sale of the company, a merger, or another strateg...
Xponential Fitness ( XPOF ) broke higher in early trading on Tuesday after the franchisor of boutique fitness studios announced that its board has initiated a review of strategic alternatives to maximize shareholder value. As part of this process, the board's independent directors will evaluate a range of potential alternatives, which may include a sale of the company, a merger, or another strategic or financial transaction. Independent Directors Rachel Lee and Lily Yang stated that the Xponential Fitness ( XPOF ) board is firmly focused on maximizing value for shareholders and is confident that undertaking a thorough and disciplined review of the opportunities available will determine the best path forward. "Xponential has built a differentiated platform with a leading portfolio of boutique fitness brands and an asset-light franchise model. While the board conducts this process, the Xponential team is continuing to execute our strategy to position our brands for success," stated CEO Mike Nuzzo. Shares of Xponential Fitness ( XPOF ) rose 8.3% in premarket trading to $7.31 vs. the 52-week range of $3.83 to $11.14. Short interest on XPOF stands at 14.1% of the total float. More on Xponential Fitness Xponential Fitness: Franchisee Health Is At Question (Rating Downgrade) Xponential Fitness, Inc. (XPOF) Q4 2025 Earnings Call Transcript Xponential Fitness, Inc. 2025 Q4 - Results - Earnings Call Presentation Xponential Fitness finalizes $17M FTC settlement Xponential Fitness CFO departs; interim CFO named
DNY59/iStock via Getty Images Investment Thesis Oxford Lane ( OXLC ) shares are up 20% in recent weeks after finding some support near the $8/share level. The stock price experienced steep declines in the past three months after write-offs, and the weakening portfolio hit its NAV/share. In the previous article , I highlighted a potential market overreaction as the price discount to NAV surged. How...
DNY59/iStock via Getty Images Investment Thesis Oxford Lane ( OXLC ) shares are up 20% in recent weeks after finding some support near the $8/share level. The stock price experienced steep declines in the past three months after write-offs, and the weakening portfolio hit its NAV/share. In the previous article , I highlighted a potential market overreaction as the price discount to NAV surged. However, this opportunity should be viewed within the context of elevated risk. Although buying OXLC at a discount to NAV improves the chances of achieving positive total returns, those chances aren't particularly high to begin with. A significant portion of investors sit at a loss despite holding OXLC for many years. A better alternative is the company's notes and preferreds, such as OXLCG , the main focus of this piece. Capital Losses OXLC suffers from structural issues that make NAV/share declines inevitable. The company is required to distribute nearly all its ordinary income (interest and dividend income from its CLO portfolio). It is required to make these distributions regardless of capital gains/losses, which have their own distribution test. In theory, capital losses would be offset by capital gains. In reality, it's mostly losses. The reasons a leveraged SME is likely to experience a credit deterioration instead of a credit upgrade are beyond the scope of this piece. For the purpose of this article, it is enough to note that this has historically been the case for OXLC. Since 2015, the company has written off roughly $900 million in assets at a rate of $75 million annually, a reflection of its ice-cube business model that emphasizes total returns as opposed to capital preservation. Author's estimates based on OXLC's filings OXLC's business model shifts the credit risk of its loan portfolio to its shareholders instead of managing that risk internally. The monthly dividend decisions are based on cash income, with capital losses (write-offs, defaults within CLO, etc.) t...