Convertible securities play multiple roles in portfolios and closed-end funds

Tony Huang, associate portfolio manager for the Advent Convertible and Income Fund, discusses the compelling reasons to add convertible securities -- a hybrid security that can act like either a stock or bond -- to a stock portfolio, noting that the flexibility of the security helps to mitigate risk, especially in volatile times. Huang talks about how different fund managers and individuals evaluate and purchase convertibles, whether convertibles are an asset class unto themselves or a reflection of the category of the company issuing the bonds, and more.