Business & Finance
CLO ETFs Boom on Higher Rates, Private Debt Woes
Key Points
CLO ETFs Boom on Higher Rates, Private Debt Woes Wall Street has an answer for retail investors seeking to profit from elevated interest rates and dodge defaults in private credit: funds that buy collateralized loan obligations. Firms including Franklin Templeton, Barings, Fidelity Investments and Janus Henderson have recently announced exchange traded funds that buy higher-rated portions of the vehicles known as CLOs. Collateralized loan obligations are backed by hundreds of risky corporate...
CLO ETFs Boom on Higher Rates, Private Debt Woes
Wall Street has an answer for retail investors seeking to profit from elevated interest rates and dodge defaults in private credit: funds that buy collateralized loan obligations.
Firms including Franklin Templeton, Barings, Fidelity Investments and Janus Henderson have recently announced exchange traded funds that buy higher-rated portions of the vehicles known as CLOs. Collateralized loan obligations are backed by hundreds of risky corporate loans, and are set up so top-level investors in the deals are last to take losses if defaults rise.