الخميس, 05 كانون1/ديسمبر 2024 06:20

New ETFs Make Private Credit Investment Easier

Written by
Rate this item
(0 votes)

BondBloxx has introduced the PCMM ETF, the first of its kind to provide direct access to private credit markets through collateralized loan obligations (CLOs). This ETF focuses on middle-market companies, a $5 trillion subset of the $30 trillion private credit market, offering diversification for fixed-income portfolios. 

 

Private credit, characterized by short durations and low correlations to equities, provides resilience against Federal Reserve policy shifts. The fund, which invests 80% of its assets in private credit CLOs, delivers current yields around 7% and charges a 68-basis-point fee. 

 

PCMM is positioned as a liquid, transparent, and cost-effective alternative to traditional private credit vehicles like interval funds. BondBloxx envisions this ETF as a key tool for financial advisors seeking enhanced returns and diversification in their clients’ portfolios.

 


Finsum: This is another perfect example of ETFs making alternatives or more complicated assets easier for clients. 

Contact Us

Newsletter

اشترك

Subscribe to our daily newsletter

Top