In 2025, the global convertible market demonstrated robust expansion, capped by a notable fourth-quarter performance. The FTSE Global Convertible Index recorded an annual return of 23.3%, with a 1.6% increase in the final quarter. The Calamos Global Convertible Strategy delivered an impressive 19.09% gain (gross of fees) for the year, marking its strongest performance since the 40.92% return in 2020. This growth was fueled by significant global issuance, reaching nearly $166.5 billion, almost matching the 2001 record of $166.7 billion. The United States now accounts for approximately 65% of the global convertible market, with over 70% of new issues in 2025 originating from US companies. Analysts are optimistic about continued economic growth, anticipating lower short-term interest rates and sustained tailwinds.
Global Convertible Market Thrives with Strong Issuance and US Dominance
In the financial landscape of 2025, the global convertible market exhibited a vibrant period of activity and growth, setting new benchmarks for performance and issuance. As the year concluded, the FTSE Global Convertible Index showcased a remarkable annual return of 23.3%, reinforcing the asset class's appeal to investors seeking balanced risk-reward opportunities. The fourth quarter alone saw a respectable 1.6% advance, contributing to the overall impressive yearly figure. The Calamos Global Convertible Strategy, a prominent player in this sector, reported a substantial 19.09% gain (gross of fees) for 2025. This achievement positioned 2025 as the strategy's most successful year since its peak performance in 2020, where it registered a 40.92% gross gain.
A key driver behind this robust market expansion was the near-record volume of global convertible issuance. Companies worldwide collectively issued an astonishing $166.5 billion in convertible securities, a figure that almost equaled the all-time high of $166.7 billion recorded in 2001. This surge in new offerings underscored a strong appetite from corporations to raise capital through convertible bonds, which offer a hybrid structure blending features of both debt and equity.
Geographically, the United States emerged as the undisputed leader in the convertible market. By the end of 2025, US companies commanded nearly 65% of the global convertible market share. Furthermore, an overwhelming majority—over 70%—of all new convertible issues throughout the year originated from US-based corporations. This dominance highlights the innovative and dynamic nature of the US corporate sector and its strategic utilization of convertible financing instruments.
Looking ahead, market strategists express considerable optimism for the future trajectory of the convertible market. Several factors are expected to provide sustained tailwinds for economic growth. Among these, the most significant is the anticipation of lower short-term interest rates. A more accommodative monetary policy environment typically reduces borrowing costs for companies, encouraging further issuance of convertible bonds and making existing ones more attractive. Additionally, the ongoing advancements and widespread adoption of artificial intelligence (AI) technologies are projected to act as a powerful catalyst, driving innovation, productivity, and investment across various sectors, which in turn could stimulate more convertible offerings from growth-oriented companies.
The impressive performance of the global convertible market in 2025, characterized by strong returns and record-breaking issuance, points to a healthy and evolving financial instrument. With favorable economic conditions on the horizon and continued innovation, the convertible market is poised for sustained momentum.
The remarkable performance of the global convertible market in 2025 underscores the enduring appeal of these hybrid financial instruments. The significant gains achieved by the Calamos Global Convertible Strategy, coupled with near-record issuance volumes and the dominance of US companies, highlight a dynamic and growing sector. This success encourages us to consider the resilience and adaptability of investment strategies that can thrive even in evolving economic landscapes. The anticipation of lower interest rates and the transformative potential of AI further emphasize the importance of identifying and capitalizing on emerging trends in the financial world. As investors, recognizing these shifts and adjusting portfolios accordingly is crucial for long-term growth and stability.