Summary

• The first quarter demonstrated the benefits of convertible securities; as equity markets fell, convertibles provided access to growth while dampening downside volatility.
• We believe elevated volatility is likely to remain a feature of markets in the months ahead.
• Escalating Middle East tensions have widened the range of potential outcomes across capital markets.
• In an environment of elevated uncertainty, we maintain high conviction in Calamos Convertible Fund’s long-term, fundamentally driven approach.
• Although issuance slowed in March as geopolitical volatility increased, we expect activity to reaccelerate as conditions stabilize or as higher rates reinforce the cost advantages of convertible financing.

Investment Manager Discussion

The convertible market enters the second quarter navigating a complex investment landscape. Conflict in the Middle East, private equity valuation pressures, and the accelerating disruption that AI is introducing to software and knowledge-based businesses each

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