CWB’s Convertible Bond Strategy Looks Like Bonds Until the Equity Markets Fall, And Then It Trades Like Stocks

The pitch for the SPDR Bloomberg Convertible Securities ETF (NYSEARCA:CWB) is simple: collect a coupon, keep equity upside, sit between stocks and bonds. CWB has rewarded holders nicely on the way up. The risk most owners do not price in is that when equity markets crack, CWB stops trading like a bond fund and starts... CWB's Convertible Bond Strategy Looks Like Bonds Until the Equity Markets Fall, And Then It Trades Like Stocks