The fixed income market no longer offers high upside potential due to low yields, while equities are too volatile for many investors. Convertible bonds bridge this gap by combining the downside protection of bonds with the upside potential of stocks. As the bond floor prevents prices from falling too far, convertibles offer less risk than pure equity exposure. NN Investment Partners believes convertibles can provide equity-like returns with lower volatility over the economic cycle through a rigorous investment process focused on credit selection, theme-based portfolio construction, and risk control.