When it comes to taming inflation and getting it back down to a more approachable threshold, the Federal Reserve was already facing a difficult challenge. Inflation was proving to be stickier than expected, and the central bank was seeing its independence challenged by the federal government. Of course, these problems only got more complicated once conflict escalated in the Middle East.
The Strait of Hormuz closing down proved to be a crucial problem for oil prices. With tankers unable to pass through the key waterway, oil prices quickly rocketed up, renewing worries that inflation wouldn’t merely be sticky, but instead on the rise.
See More: Markets in Mayhem: How to Safely Stick With the S&P 500
These concerns are already seemingly validated. The March CPI report showed that the consumer price index rose 0.9% in March, notably the largest increase since June 2022. This now puts the annual inflation rate at 3.3%.
Unsurprisingly, the Iran conflict and subsequent rise of gas prices played a key role in the sharp uptick in inflation. The Bureau of Labor of Statistics noted that gasoline rose 21.2% in March and alone accounted for nearly 75% of the headline price increase.
It goes without saying that this CPI report may make the Fed’s rate cutting regimen even more complicated. And an uncertain Federal Reserve can make it more difficult for one to make sure their bond portfolio is well positioned for changes in interest rates.
Alternative Income ETFs Offer a Compelling Solution
This is why alternative income strategies are increasingly gaining in popularity. These approaches can provide yield, diversification, and a cushion in case the bond market flounders from all these inflationary woes.
See More: 3 Alternative ETFs for Navigating Market Volatility
The Calamos CEF Income & Arbitrage ETF (CCEF ) is offering a particularly compelling yield right now. As of March 31, 2026, the fund has a 30-day SEC yield of 8.24%.
CCEF’s income potential comes from its approach to closed-end fund investing. The fund leverages Calamos Investments’ decades of experience to find closed-end funds trading at a compelling discount. This opens up opportunities for not only income, but long-term capital appreciation as well.
By pairing closed-end fund exposure via CCEF with traditional bond investments, advisors and investors can access a few different benefits. These diversified avenues of income can both potentially amplify overall portfolio yield and also cover potential losses elsewhere, should the greater market enter a bout of volatility. After all, when the going gets tough, simply opting for high-income strategies is oftentimes a good way to navigate the chaos.
For more news, information, and analysis, visit the Alternatives Content Hub.
Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. Please see the prospectus and summary prospectus containing this and other information which can be obtained by calling 1-866-363-9219. Read it carefully before investing.
An investment in the Fund(s) is subject to risks, and you could lose money on your investment in the Fund(s). There can be no assurance that the Fund(s) will achieve its investment objective. Your investment in the Fund(s) is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The risks associated with an investment in the Fund(s) can increase during times of significant market volatility. The Fund(s) also has specific principal risks, which are described below. More detailed information regarding these risks can be found in the Fund’s prospectus.
Risks of investing in the Fund include risks associated with (1) the Fund’s investment in closed-end fund shares; (2) the closed-end funds’ investments; and (3) any other investments of the Fund, including investments in ETFs, BDCs, and derivative instruments. The shares of closed-end funds may trade at a discount or premium to, or at, their NAV. The securities of closed-end funds may be leveraged. As a result, the Fund, may be exposed indirectly to leverage through an investment in such securities. An investment in securities of closed-end funds that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund’s long-term returns on such securities (and, indirectly, the long-term returns of its shares) will be diminished. In addition, closed-end funds are allowed to invest in a greater amount of illiquid securities than open-end mutual funds. Investments in illiquid securities pose risks related to uncertainty in valuations, volatile market prices, and limitations on resale that may have an adverse effect on the ability of the fund to dispose of the securities promptly or at reasonable prices. The Fund may invest in BDCs, which typically operate to invest in, or lend capital to, early stage-to-mature private companies as well as small public companies. The Fund’s investment in shares of ETFs subjects it to the risks of owning the securities underlying the ETF, as well as the same structural risks faced by an investor purchasing shares of the Fund, including authorized participant concentration risk, market maker risk, premium-discount risk and trading issues risk. Derivatives are instruments, such as futures and forward foreign currency contracts, whose value is derived from that of other assets, rates or indices. The use of derivatives for non-hedging purposes may be considered more speculative than other types of investments.
30-day SEC yield reflects the dividends and interest earned by the Fund during the 30-day period ended as of the date stated above after deducting the Fund’s expenses for that same period.
Performance data quoted represents past performance, which is no guarantee of future results. Current performance may be lower or higher than the performance quoted. The principal value of an investment will fluctuate so that your shares, when sold, may be worth more or less than their original cost.
Calamos Financial Services LLC, Distributor
NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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