Calamos Convertible Opportunities and Income FundNASDAQ: CHI

METRO CHICAGO, Ill. , Sept. 3, 2024 /PRNewswire/ -- Calamos Investments®* has announced monthly distributions and sources of distributions paid in September 2024 to shareholders of its seven closed-end funds (the Funds) pursuant to the Funds' respective distribution plans.

Calamos Convertible Opportunities and Income Fund aims to provide high current income through convertible securities, outperforming investment-grade bonds year-to-date. The Fund's yield is reasonable at 9.61%, which beats the indices but is below some of its peers. The Fund's leverage looks a bit high, and it has surprisingly increased over the past few months.

You may have noticed that since the pandemic, there's been a somewhat perverse desire to make the economy look worse than it is.

METRO CHICAGO, Ill. , June 4, 2024 /PRNewswire/ -- Calamos Investments®* has announced corrections to monthly distributions and sources of distributions paid in June 2024 to shareholders of its seven closed-end funds (the Funds) pursuant to the Funds' respective distribution plans.

Calamos Convertible Opportunities and Income Fund has provided solid long-term results and provides convertible and high-yield exposure. The fund has also delivered a steady monthly distribution to its investors, though it remains significantly reliant on capital gains. While the fund's premium has come down some since our last update, it is still trading at a premium that could be considered around fair value.

Convertible Opportunities and Income Fund is a closed-end fund focused on convertible securities, with a high allocation to the technology sector. The fund has had a positive performance this year, up 9% but with a high volatility and a -16% drawdown earlier in the year. The fund's premium to NAV is towards top end of its historic range, and it has a high correlation to the S&P 500.

Calamos Convertible Opportunities and Income Fund offers a high level of current income with an 11.12% current yield. The CHI closed-end fund focuses on investing in convertible securities, which provide stable income and upside potential. The fund has delivered a 3.98% total return year-to-date, outperforming many other closed-end funds and the bond index.

Calamos Convertible Opportunities and Income Fund is trading at a premium over its net asset value, making it unattractive for new investment dollars. The fund's total expense ratio has been rising due to higher borrowing costs, but its portfolio has also been seeing higher yields on its convertibles. An alternative to CHI could be BCV or ECF, though ECF has seen its discount narrow more recently, making BCV the more attractive alternative.

We review CEF market valuation and performance through the second week of July and highlight recent market action. CEFs had a good week overall as NAVs gained, however, discounts remain sluggish. The net income profile of some CEFs has turned negative, owing to a high cost of leverage.