As the favorable effects of lower interest rates gradually feed through the economy, one sector of the convertible market that holds particular appeal, experts say, is so-called busted convertibles.

"When we decided to re-enter the convertible market, it just made sense to outsource it, due to the low volume," said David Krupp, a Ford spokesman.

While originally a market for outright investors, the convertible market had grown to be dominated by the hedged investors both in terms of ownership and trading volume, at potentially 70%.

The forced liquidations caused convertible securities to look particularly attractive and attracted "Crossover Buyers," or investors who cross over from the asset class of their primary focus into the convertible market.

But these days the convertible market is hungry for new bonds because so many of the old ones are hopelessly out of the money as far as conversion goes.

While bonds dominate the convertible market, accounting for 65 to 80 percent of the assets of most funds in the group, the balance consists of convertible preferred stock.

The fund will probably reopen once the convertible market becomes more robust, Mr. Calamos said, but right now there is a high demand for convertibles and not enough being issued.

Perhaps the biggest short-term threat to the convertible market is the potential for investors to pull more money from hedge funds specializing in the convertibles.

Beyond the desire to offer models that will draw sun worshippers to the showroom, there is also an urgency to wake the convertible market from its lethargy of recent years.

For these reasons, most of the new interest in the convertible market is still "on the institutional side," he said.