10 Questions With Northern Income Equity's Ted Southworth

Despite a sharp jump in the market recently, after a veritable crash in June and July, the direction of U.S. stocks remains in question.

But Ted Southworth, manager at the (NOIEX Quote)Northern Income Equity fund, has one way to play the volatility. By investing in convertible bonds, he stands to profit from an upswing in the market but will also be protected in the event of another downturn.

That's because convertibles pay interest -- sometimes as much as 15% -- while also giving investors the option of converting their bonds into stock at a fixed price. Alternatively, investors can redeem their bonds at a set date in the future for par value. ...