Convertible Securities: The Latest Instruments, Portfolio Strategies, and Valuation Analysis, Revised Edition [Hardcover]

John Calamos (Author)

Book Description

Publication Date: June 1, 1998 | ISBN-10: 1557389217 | ISBN-13: 978-1557389213 | Edition: 2

Convertible securities, combining aspects of both stocks and bonds, truly create a "best of both worlds" investment. This instructive book uses everyday terms and illustrations to explain types of convertibles, reveal high-return investment strategies, and decode pricing, hedging, and risk/return considerations.

Editorial Reviews

From the Back Cover

Strategies for earning equity-like returns--with substantially lower risk! Convertible securities--generally, corporate bonds which can be converted into a fixed number of common stock shares--have been around for over a century. While they have generated decent returns for savvy, risk-averse investors, and are an ideal security in today's volatile markets, convertibles have received remarkably little coverage in the popular press. Convertible Securities opens the window, providing in-depth research and analysis to help both new and experienced investors benefit from the many advantages of convertibles. Eye-opening from front to back, it traces: the basics of convertible evaluation, including its investment value as a straight bond, its convertible value as a stock, and its theoretical fair value; proven methods for uncovering convertibles trading below fair value by identifying key variables such as conversion premium and yield advantage; how to use popular convertible bond indexes to track performance, benefiting from their advantages, while remaining aware of their shortcomings. The basic concepts of a convertible security are fairly straightforward, yet nuances make it one of the most involved and potentially profitable investments available. Let Convertible Securities act as your guidebook to this exciting investment class, providing you proven strategies to participate in the capital appreciation of common stocks, while providing a consistent buffer against risk.

About the Author

John P. Calamos is the founder, president, and chief investment officer of Calamos Asset Management, Inc., an investment firm specializing in managing convertible portfolios which has over $2.2 billion in assets under management. A frequent speaker at investment seminars and conferences, Mr. Calamos has taught graduate level courses on finance and investments. He is the acclaimed author of Investing in Convertible Securities, writes a column on investment risk management in Personal Financial Planning, and has written articles for Pension World, Pensions & Investments, Journal of Financial Investing, and Financial Executive. Mr. Calamos has appeared on CNBC, and is frequently quoted as a convertible securities authority in Barron’s, Fortune, Forbes, The Wall Street Journal, Pensions & Investments, Financial World, Nation’s Business, and on Bloomberg Forum.

Product Details

• Hardcover: 417 pages
• Publisher: McGraw-Hill; 2 edition (June 1, 1998)
• Language: English
• ISBN-10: 1557389217
• ISBN-13: 978-1557389213
• Product Dimensions: 9.1 x 6 x 1.1 inches
• Shipping Weight: 1.6 pounds
• Average Customer Review: 2.8 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #1,128,699 in Books (See Top 100 in Books)

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Most Helpful Customer Reviews

30 of 30 people found the following review helpful:

2.0 out of 5 stars Author's Conflicted Intentions Evident, September 9, 2000

By 

S. Schneider (USA) - See all my reviews
(REAL NAME)   

This review is from: Convertible Securities: The Latest Instruments, Portfolio Strategies, and Valuation Analysis, Revised Edition (Hardcover)

The table of contents and size of this book suggests a real winner, perhaps even a Graham & Dodd treatment of the convertibles arena. The wonder is how such a long-winded tome can leave the convertibles student so wanting. The book's problem is probably the author's conflicted intentions: "Do I want my readers to go out and find some nice convertible bonds, or do I want them to pay me to go find them some nice convertible bonds?" Guess who gets short shrift?

The introduction to convertibles section is reasonably well written. But the analysis and strategy sections of the book are suspiciously hazy. I say " suspiciously " because the book's author delivers just enough information so one might be comfortable handing over portfolio management to the author's investment management firm, but not nearly enough to implement a portfolio for oneself. Even Calamos' simple price model is insufficiently described.

Thus, after a windy, winding road of nearly 400 pages, CONVERTIBLE SECURITIES reads as a mediocre introduction to convertibles imbedded within an advertisement for the Calamos firm (for which I had to pay $65!).

26 of 27 people found the following review helpful:

1.0 out of 5 stars A Pedestrian Discourse on an Interesting Topic, June 2, 1999

By A Customer

This review is from: Convertible Securities: The Latest Instruments, Portfolio Strategies, and Valuation Analysis, Revised Edition (Hardcover)

This book's jacket promises "The Latest Instruments, Portfolio Strategies, and Valuation Analysis." A pretty tall order which, not surprisingly, this book does not deliver, in my humble opinion.

I found the analytical sections particularly incomplete and essentially unusable.

Convertible securities combine the appeal of simplicity with the opportunity for serious quantitative analysis. When this book deals with the simple ideas, it does ok. When it ventures into quant-land, I found the short-comings unbearable.

I am sorry to have such a negative opinion. Perhaps other, more enlightened, readers will find redeeming attributes in this book that excaped me.

6 of 6 people found the following review helpful:

1.0 out of 5 stars Content free, November 9, 2003

By 

GP West FMA (Johannesburg, Gauteng South Africa) - See all my reviews
(REAL NAME)   

This review is from: Convertible Securities: The Latest Instruments, Portfolio Strategies, and Valuation Analysis, Revised Edition (Hardcover)

To even to most junior quant, this book would be content free. What's more, he promises the revolutionary new Calamos valuation method (now, not even Nobel prize winners name their theories after themselves, they let other people do it for them, so already, suspicion) but again, nothing, just some snapshots from the screen of his software. The book blurb is misleading, it actually promises the method, not just an advert for it. Do not buy this book, you will learn nothing.